The Uttar Pradesh Power Corporation Limited (UPPCL) has proposed a steep hike of up to 30 per cent in electricity tariffs for the 2025–26 financial year, seeking approval from the state’s Electricity Regulatory Commission to offset a widening revenue gap, ETV Bharat reported.
According to the report, the power companies expect a shortfall of around Rs 19,600 crore based on their current income and growing expenses. To make up for this gap, they have requested a steep 30 per cent hike in electricity tariffs. If the Electricity Regulatory Commission approves the proposal, electricity bills will become significantly more expensive for consumers across the state.
According to UPPCL officials, there hasn't been an increase in electricity prices in the previous five years. The revenue deficit has increased by 12.4% as a result. The company has provided financial information to back up its claim that it is unable to sustain these growing losses.
One of the main reasons for the financial crisis is the low recovery rate of electricity bills. UPPCL spokesperson Akhilesh Singh, while speaking to ETV Bharat, informed that in the financial year 2024–25, only 88 per cent of the billed amount was recovered. Despite the state government providing subsidies, the gap widened from Rs 4,378 crore in 2023-24 to Rs 13,542 crore in 2024-25. In 2025-26, this gap is expected to hit Rs 19,600 crore, even after subsidies.
Adding to the problem, around 10 per cent of the transformers in the state are not functioning properly. The power department also revealed that 54.24 lakh consumers have not paid even a single electricity bill. These defaulters owe Rs 36,353 crore. Another 78.65 lakh consumers haven’t paid their bills in the last six months, with dues of Rs 36,117 crore.
The number of unpaid bills remains high, and the power corporation’s financial health is worsening despite ongoing recovery drives. Meanwhile, protests have begun against the proposed hike in electricity rates. Several consumer groups and energy activists have accused the government of trying to benefit private power companies at the cost of the common man, according to the report.
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