Electricity in Uttar Pradesh may soon become up to 30% more expensive. UPPCL (Uttar Pradesh Power Corporation Limited) has sent a proposal to the Electricity Regulatory Commission asking for a rate increase in 2025-26 due to heavy financial losses.
₹19,600 Crore Loss Predicted
Power companies expect a loss of ₹19,600 crore if current rates continue. They are pushing for a 30% hike to cover this gap between income and expenses.
No Hike for 5 Years
Officials say electricity rates haven’t increased in the last five years, causing a 12.4% revenue deficit. UPPCL claims it cannot bear more losses and has submitted the data to the commission.
Low Bill Recovery
Power companies state that full bill recovery is not possible. In 2024-25, only 88% of bills were collected, leading to a bigger shortfall even after government subsidies.
Gap Growing Despite Subsidies
2023-24 loss: ₹4,378 crore
2024-25 loss: ₹13,542 crore
Expected 2025-26 loss: ₹19,600 crore
A 30% rate hike is being requested to handle this growing loss.
Unpaid Bills and Faulty Equipment
10% of transformers are not working properly.
54.24 lakh consumers have never paid their bills – dues of ₹36,353 crore.
78.65 lakh consumers haven’t paid in 6 months – ₹36,117 crore pending.
Public Protests Begin
As news of the possible hike spreads, public protests have started. Energy and consumer groups accuse the government of favoring private companies over the common people.