UERC finalizes retail tariff revision for FY14

Uttarakhand has been the latest state to revise its tariff for its different category of consumers (preceded by AP, MP, HP, Karnataka and Kerala). According to media reports, the tariff revision has come as a sigh of relief given that fact that Uttarakhand Power Corporation Limited (DISCOM) had demanded and proposed for an exorbitant tariff hike. UPCL had proposed a whopping annual revenue requirement of Rs. 4834.44 crore whereas Hon’ble commission slashed the same to Rs. 3932.60 crore. Evidently, to offset the revenue gap according to the proposed ARR by UPCL, the steep hike was expected but fortunately was not to be.

The tariff hike proposed by UPCL for domestic category and industrial consumers can be seen in the table below In the table, it is worthwhile to note that fixed charges were also not kept untouched.

The tariff approved by the commission and the percentage hike effective from 1^st May 2013 can be found in our analysis below:

Relevant Media coverage:

• Business Standard
• The Hindu
• Economic Times