The UP Electricity Regulatory Commission (UPERC) may lower electricity tariff for consumers using prepayment (prepaid) meters in the state.
The step may follow in the wake of the Union power ministry having told states to request the state electricity regulatory commissions (SERCs) to consider decreasing the retail power tariff of consumers who have been provided prepayment meters on their premises.
The ministry has also asked states to make necessary changes in the tariff regulations etc within next six months to make this possible. The order in this regard was issued to principal secretaries, energy, on January 16.
“We learn the Union power ministry has issued a letter asking states to take initiative for lowering the tariff for prepaid consumers and will start working in that direction after we received the letter officially,” said sources in the energy department here.
The ministry in its letter has pointed out that prepayment meters are being provided to end consumers by discoms and such consumers pay in advance for electricity consumed by them. “In cases of prepayment, the carrying costs will come down, leading to reduced requirement of working capital for the discoms,” it said.
“Further, it will also eliminate associated costs involved in meter reading, billing, collection etc. Therefore, where prepayment meters are being installed, electricity tariff per unit for consumers should reduce,” it said.