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In the face of ARR approval, the UP Electricity Council opposes discom privatization and calls for URC intervention
Arpita Kushwaha | May 14, 2025 3:27 PM CST

Demanding that the privatization of Purvanchal and Dakshinanchal Power Distribution Corporations be stopped, the UP State Electricity Consumers Council submitted a public interest application to the Uttar Pradesh Electricity Regulatory Commission on Tuesday.

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The council said that the current privatization process is unlawful and has to be halted because Purvanchal and Dakshinanchal corporations’ Annual Revenue Requirement (ARR) for the fiscal year 2025–2026 has been approved, along with that of other electricity firms. In the meanwhile, the Electricity Employees Joint Struggle Committee has said that it would begin protesting the privatization on Wednesday.

The group issued a warning that the electrical workers would begin unannounced protests if a tender for the corporation’s privatization was released. In order to present the suggestion, Council President Avadhesh Kumar Verma met with Member Sanjay Kumar Singh and Chairman Arvind Kumar on Tuesday.

According to Verma, the commission has received the ARR accounts from every electricity company. Section 64(3) of the Electricity Act-2003 states that the electricity tariff procedure must be completed within 120 days following the acceptance of the ARR. Without the Commission’s approval, the Power Corporation started the Purvanchal and Dakshinanchal Power Distribution Corporations’ privatization process.

The excess that the state’s consumers have with the electricity firms is around Rs 33,122 crore. Approximately Rs 16,000 crore of this is owned by Dakshinanchal and Purvanchal customers. He questioned how the privatization of both enterprises would result in the recovery of this Rs 16,000 crore. He asked the commission to act swiftly within the regulatory framework, calling the privatization process unlawful.


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