UERC Order Balances Tariff Hike, Efficiency Targets, And Consumer Concerns For UPCL FY27 In Uttarakhand

The Uttarakhand Electricity Regulatory Commission (UERC) has issued an important order that outlines the financial and operational plans for Uttarakhand Power Corporation Ltd. (UPCL). Dated March 30, 2026, the order covers the true-up for FY 2024-25, a review of FY 2025-26, and the approved Aggregate Revenue Requirement (ARR) for FY 2026-27.

A key point in the order is UPCL’s proposal to increase electricity tariffs by 16.23% for FY 2026-27. The utility reported a large revenue gap of about ₹2,036.99 crore. This gap is mainly due to past financial losses and the rising cost of power purchase. UPCL stated that as a regulated utility, it needs to recover these costs from consumers to maintain its operations.

However, the proposal has faced strong opposition from different groups. Industrial consumers raised concerns over high fixed charges, saying these charges act like a penalty on capacity rather than reflecting actual electricity use. Domestic consumers and small businesses also expressed dissatisfaction over issues like frequent power cuts, safety concerns in infrastructure, and errors in billing.

In response, UPCL explained that it is trying to remain financially balanced while still supporting vulnerable consumers. The utility highlighted that it provides a 50% subsidy to households in snowbound areas and those with very low electricity consumption, as directed by the state government.

The Commission has also focused on improving operational efficiency. It has set a target to reduce distribution losses to 12.25% for FY 2026-27. To achieve this, UPCL has been directed to implement the Revamped Reforms-linked Distribution Sector Scheme (RDSS). This includes installing smart meters across feeders and consumer connections to better monitor usage, reduce theft, and improve overall system performance.

UERC has also reviewed UPCL’s internal costs. While the utility proposed higher spending on employees and maintenance, the Commission approved a lower amount. It has asked UPCL to manage expenses like salary revisions and pensions through better efficiency instead of passing the full burden to consumers.

Another major concern is the high level of outstanding dues, which crossed ₹3,163 crore by late 2025. The Commission has instructed UPCL to improve transparency in reporting and take stronger steps to recover these dues.

Looking ahead, UERC has directed UPCL to reduce its dependence on costly short-term power purchases and instead focus on sourcing cheaper electricity. It has also set up a committee to monitor high-loss feeders and asked for a clear action plan to improve their performance.

Overall, the order aims to balance the financial stability of UPCL with the need to provide affordable and reliable power to consumers in the state.