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The Uttar Pradesh State Electricity Consumer Council has vehemently opposed the move, calling for a 45 percent rate reduction, even as power companies in Uttar Pradesh push for a 30 percent increase in electricity tariffs, citing losses of over Rs 19,600 crore in the current financial year (2025–26).

In a public interest application submitted to the Electricity Regulatory Commission, the Consumer Council claims that customers now have Rs 33,122 crore in excess with electricity firms. In order to support a price increase, the corporations were accused by Council President Awadhesh Verma of fabricating numbers and inflating losses in the revised Annual Revenue Requirement (ARR).

The Commission received the updated ARR on Monday, which calls for a sharp rate rise and anticipates enormous losses. Verma contends, however, that customers have already paid more than they owed, with a surplus of Rs 13,337 crore recorded up till 2017–18, which, when adjusted for carrying costs, has increased to almost Rs 33,000 crore. He emphasized that a large cut in tariffs should result from this surplus.

Verma said that because of a comparable surplus, Noida Power Company’s power has been 10% less expensive over the last three years. He said, “Why not for the rest of the state if it’s feasible there?”

The state government and electricity corporations have also been held accountable by the Consumer Council for the monetary losses. Given that the government has declared free electricity to farmers and subsidized rates for the poor, Verma questioned why subsidies could be seen as a burden. He went on to say that the electricity providers are in charge of collecting the 54 lakh non-paying customers’ debts.

Citing the Smart Prepaid Meter project, for which the Center had authorized Rs 18,885 crore while bids for Rs 27,342 crore were submitted, Verma further drew attention to purported financial misconduct. He questioned, “Who is in charge of the extra Rs 9,000 crore?”

He also disputed the ARR’s assertion of Rs 10,000 crore in consumer debt, claiming that because electricity firms charge interest on past-due payments, they shouldn’t be considered direct losses.

Verma presented Commission Chairman Arvind Kumar with a thorough proposal that included facts, calling for the increased ARR to be rejected and for consumer relief.

The UP Power Corporation has responded by defending the updated ARR and refuting any claims of data tampering. According to Chief General Manager (Finance) Sachin Goyal and Chief Engineer (Commercial) DC Verma, the balance statement was properly authorized by the Board of Directors and audited by the CAG, and all data were created by departmental engineers and are correct.

They said that the interests of electricity corporations and customers are taken into consideration while making decisions.

Pramod Tiwari, a Rajya Sabha MP and senior Congress leader, added to the criticism by denouncing the decision to raise energy rates. He said that there is no sufficient power supply and no attempt to boost electricity output in spite of the extreme summer heat. He said that because there are no elections coming up, the administration isn’t even purchasing electricity from outside sources. A 30% increase, Tiwari said, would give the populace a “double whammy.”

All eyes are now on the power Regulatory Commission’s decision about the planned raise as the controversy over power prices heats up.