By Rishabh Chamoli | 2022-10-03
When it comes to buying or renting a house, a number of buyers and tenants consider the cost of living in the city. One expense that forms a huge part of this cost are electricity charges. While rentals in Noida are lower than in Delhi, the electricity charges are way higher in Noida.
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued a new tariff order for 2022 to 23. The government has withdrawn the Rs 7 per unit maximum slab for urban consumers and capped it at Rs 6.5 per unit. The tariff applicable for discoms of UPPCL will also be applicable for consumers of Noida Power Corporation Limited (NPCL). In addition to this, NPCL consumers will get a 10 percent regulatory discount on the total amount billed every month.
The residents of Noida have time and again raised their concerns regarding the hefty electricity bills that they pay. The electricity charges in Noida forms almost 20 percent of the monthly expenditure. This when compared to Delhi is exorbitant and thus impacts buying and renting decisions of many home buyers and tenants.
What are the new electricity charges and tariffs?
Earlier, the Uttar Pradesh (UP) government has increased the electricity tariffs across all categories, be it residential or agricultural/commercial properties. The increase in the tariffs was around 12 to 15 percent on average. However, the regulatory surcharge of 4.28 percent was abolished. Therefore, an effective tariff hike was around 7.4 percent.
The tariffs for urban domestic consumers have been increased from Rs 4.90 per unit to Rs 5.50 per unit for first 150 units of consumption. For 151 to 300 units of electricity consumption, rates have been revised from Rs 5.40 per unit to Rs 6 per unit. The tariffs have been revised from Rs 6.20 to Rs 6.50 per unit on 301 to 500 units, and from Rs 6.50 to Rs 7 per unit for units consumed above 500.
The rate of power supplied to single point connections in apartments has also been increased from the current Rs 6.10 to Rs 7. However, the charges for multi point supply will remain the same as that of other domestic consumers.
The consumers using prepaid meters will be eligible for a two percent discount on the tariffs. This has been done to increase the cash flow to the electricity companies.
Major concerns of Noida residents from NPCL
Installation of dual meters
One of the major issues of the tussle between the residents and the developers was a single point connection system. In this system, the developer would take one connection for the whole society and realise tariffs from each flat owner. In this case, the flat owners ended up paying significantly more charges than the actual units of electricity used.
The residents have been demanding a multi point electricity connection to each flat so that each flat owner can pay according to their own consumption pattern. After raising the concerns at various forums, the demand was met only recently.
Commenting on the issue of dual meter installation, Niazi Hasan, Estate Manager, Logix Blossom County, Noida, says, Even the builder fraternity was keen on the installation of the dual metering system. The single point connection system put the burden of providing electricity on developers, which was very hassle riddled and resource consuming. Now that each flat has its own connection under multi point connection system, the responsibility of the builder has reduced. It is also beneficial for the consumers as they pay only for the amount of electricity they consume.
Over reliance on diesel generators
It was observed that many societies in and around Noida were relying on diesel generators for regular power supply and power backups. Builders charge exorbitantly high charges for the electricity and backup, and the residents are left with no option but to comply. The Resident Welfare Associations (RWA) and citizens delegations have complained to the regulatory authority and sought grievance redressal. Along with being disadvantageous to the residents, it is also harmful to the environment.
In a nutshell, there must be a balance between the increase in electricity tariffs and consumer interests. A thorough consultation and feedback incorporation can be very helpful in this regard. Although the electricity tariffs might have been increased to improve the electricity distribution network, and ensuring continuous power supply in rural areas, a predictive policy regime and a collaborative approach of the government will benefit all stakeholders.
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