Uttarakhand: Uttarakhand residents are likely to face a hike in their electricity bills as the state’s power regulator prepares to impose an additional charge of up to 25 paise per unit for the next two years. The decision comes after the Uttarakhand Power Corporation Limited (UPCL) lost three major cases worth ₹783 crore in the Central Electricity Appellate Authority. As a result, the financial burden is now expected to be passed on to the consumers.
UPCL to Repay ₹783 Crore in 11 Installments
According to information received, the Uttarakhand Electricity Regulatory Commission (UERC) has directed UPCL to pay ₹783 crore to private power companies in 11 installments. To cover this financial loss, UPCL plans to include the cost in future electricity tariffs. Consequently, from April 2026, the new tariff structure will likely reflect this additional cost, directly affecting domestic consumers.
Consumers May Bear the Cost of UPCL’s Loss
The financial loss incurred due to high-cost power purchases and line loss cases is expected to be compensated through consumer tariffs. This means households will indirectly bear the cost of UPCL’s operational shortcomings, a pattern that has repeated over the years whenever such losses occur.
Consumers Raise Objections Before the Regulatory Commission
In response, electricity consumers have approached the Uttarakhand Electricity Regulatory Commission (UERC), demanding that the ₹783 crore burden not be transferred to the public. Geeta Bisht, General Secretary of the Uttarakhand Pahadi Mahasabha, submitted a letter to the Commission’s Chairman urging that no additional recovery be made from consumers. She emphasized that electricity rates are already increasing annually, and even monthly bills have seen steady hikes.
Public Concerns Over Smart Meter Issues and Rising Tariffs
Consumers are already facing problems related to smart meters, and an additional tariff burden may lead to widespread dissatisfaction. Consumer groups warn that if UPCL increases electricity prices by 10% to compensate for payments to private firms, power costs could become unaffordable for many households. Hence, several organizations have requested that these expenses not be included in the 2026–27 tariff revision proposal.
Estimated Impact on Monthly Bills
If the proposed rate hike is implemented, consumers may experience the following increases in their electricity bills:
- 100 units: ₹25 increase
- 200 units: ₹50 increase
- 300 units: ₹75 increase
- 400 units: ₹100 increase
- 500 units: ₹125 increase
The decision, if finalized, will significantly affect household budgets, particularly for middle- and lower-income families already struggling with inflation and rising living costs.
