The Uttar Pradesh Electricity Regulatory Commission (UPERC) has drastically revised Noida Power Company Ltd's (NPCL) revenue surplus for the fiscal year 2023-24, cutting it from Rs 1,500.63 crore to Rs 593.81 crore. This reduction of approximately Rs 906.82 crore follows a detailed re-examination of tariff-related issues mandated by the Appellate Tribunal for Electricity (APTEL).
Revised Surplus After APTEL Directive
In an order dated June 17, UPERC revisited multiple components of NPCL's aggregate revenue requirement (ARR) spanning from FY 2018-19 to FY 2023-24. The exercise was conducted in compliance with APTEL orders arising from appeals filed by NPCL against earlier tariff and true-up orders. True-up is the regulator's final verification of a distribution company's actual income and expenses after the fiscal year ends, determining whether it earned or spent more than originally estimated when setting electricity tariffs.
The reduction in surplus is not attributable to a single factor. UPERC found that several of NPCL's expenses were higher than previously accounted for, including power purchase costs, infrastructure spending, loan-related costs, and other operational expenses. Once these revised costs were factored in, the company's surplus decreased significantly.
Impact on Consumer Benefits
The Uttar Pradesh Rajya Vidyut Upbhokta Parishad (UPRVUP) has sought a review of the order, expressing concern that the change could affect future tariff calculations and consumer benefits. UPRVUP chairman Avadhesh Kumar Verma stated, "The revised surplus may impact the tariff rebate currently available to consumers in Greater Noida and nearby areas. We have urged the commission to examine the issue and protect consumer interests. We have also raised concerns that litigation costs incurred by NPCL are ultimately recovered through electricity tariffs, increasing the burden on consumers."
NPCL serves nearly 2.5 lakh power consumers. A large surplus in a power utility's accounts can support tariff rebates, limit future tariff hikes, and provide benefits to consumers through regulatory adjustments. The reduction in surplus may thus narrow the scope for such benefits.
Regulatory and Legal Context
The revision stems from a series of appeals by NPCL against UPERC's earlier orders. APTEL directed the commission to re-examine the ARR components, leading to the updated figures. The order highlights the complexities in tariff determination, where initial estimates are later adjusted based on actual costs and regulatory scrutiny.
UPRVUP's call for review underscores ongoing tensions between consumer advocacy and utility financial management. As the commission considers the plea, stakeholders await further clarity on how the revised surplus will influence electricity tariffs in the region.
