UP power bills may jump 30%; here's why
What's the story
The Uttar Pradesh Power Corporation Limited (UPPCL) has reportedly proposed a massive hike of up to 30% in electricity tariffs for the 2025-26 financial year.
The proposal, which is pending approval from the state's Electricity Regulatory Commission, aims to bridge a widening revenue gap.
According to ETV Bharat, state power distribution companies are facing a revenue shortfall of around ₹19,600 crore due to rising operational costs and stagnant tariffs.
Financial crisis
UPPCL's financial struggles and low bill recovery rates
UPPCL officials have noted that there has been no increase in electricity prices for the past five years, resulting in a cumulative revenue deficit that has grown by 12.4%.
The utility has submitted its financials to the regulator, arguing it cannot bear rising losses without revising prices.
A major factor contributing to this crisis is the low recovery rate of electricity bills.
Revenue shortfall
UPPCL's revenue gap and technical inefficiencies
UPPCL spokesperson Akhilesh Singh told ETV Bharat that only 88% of the billed amount was recovered in FY2024-25.
Despite state subsidies, the revenue gap widened from ₹4,378 crore in FY2023-24 to ₹13,542 crore in FY2024-25. This figure is expected to reach ₹19,600 crore in FY2025-26 despite government support.
Technical inefficiencies also add to UPPCL's woes, with around 10% of power transformers reportedly malfunctioning across the state.
Payment issues
UPPCL faces widespread payment defaults and public backlash
Further, payment defaults are a major issue for UPPCL, with over 54.24 lakh consumers never paying an electricity bill, owing up to ₹36,353 crore collectively.
Another 78.65 lakh consumers are defaulting on payments for over six months, owing ₹36,117 crore in total dues.
The proposed tariff hike has triggered protests across the state, with consumer rights groups and energy activists accusing the government of favoring private power companies at ordinary citizens' expense.