Uttarakhand Electricity Regulatory Commission Freezes Power Tariffs for FY 2026-27
In a significant move providing relief to consumers, the Uttarakhand Electricity Regulatory Commission (UERC) has announced that there will be no increase in power tariffs for the financial year 2026–27. This decision comes despite a proposal by the Uttarakhand Power Corporation Limited (UPCL) seeking a substantial 17.4% hike, with the overall increase by utilities estimated at 18.8% after accounting for claims from UJVN Limited and the Power Transmission Corporation of Uttarakhand Limited (PTCUL).
Rationalization of Tariffs and Subsidy Maintenance
UERC chairman ML Prasad stated, "The Commission has rationalised tariffs across some categories while keeping fixed and demand charges unchanged." He emphasized that cross-subsidy levels have been maintained within +/- 20%, in strict adherence to the National Tariff Policy. This approach ensures that while some adjustments are made, the overall burden on consumers remains minimal, with no upward revision in key charges.
Financial Surplus Eliminates Need for Hike
The Commission approved an Annual Revenue Requirement (ARR) of Rs 12,489.5 crore for FY 2026–27. With projected revenues of Rs 12,590.4 crore based on expected sales of 16,444 million units, a surplus of Rs 100.8 crore is anticipated. This financial buffer effectively eliminates the necessity for a tariff hike, as the revenue exceeds the required expenditure.
In contrast, UPCL had initially projected a higher ARR of Rs 14,731.9 crore and a revenue gap of Rs 2,183.9 crore, citing higher distribution losses as a justification for tariff revision. However, after a thorough review, the Commission approved a lower cost of supply at Rs 7.60 per unit, compared to the utility's projection of Rs 8.79 per unit.
Distribution Loss Targets and Regulatory Approvals
UERC also set a distribution loss target of 12.2% for the period. Total energy requirements are estimated at 19,524 million units, which includes pumping needs. UPCL had filed petitions in December 2025 for tariff approval, annual performance review, and true-up for previous financial years, all of which were considered in this decision-making process.
This announcement underscores the Commission's commitment to balancing utility needs with consumer interests, ensuring stable electricity prices in Uttarakhand amidst economic pressures.
