: Taking new energy connections in undeveloped and un-electrified colonies will now change into costlier. It’s because the U.P. Electrical energy Regulatory Fee (UPERC) has doubled the event prices from ₹35 to ₹70 per sq. ft. On the identical time, the fee has offered aid to these going through delays by scrapping the requirement of 25% plot house owners making use of for electrification in these colonies.
To account for rising infrastructure prices, the event cost can be adjusted yearly based mostly on the Wholesale Worth Index (WPI). (For illustration solely)
“The order, issued on February 27 under Section 50 of the Electricity Act, 2003, aims to facilitate faster electricity connections by eliminating the condition that required at least 25% of plot owners to construct houses and 50% of them to deposit development charges before electrification could begin,” a UPERC official mentioned.
“Now, the distribution licensee can develop the required infrastructure without waiting for a minimum number of applicants,” he added.
UPERC has elevated the one-time growth cost to ₹70 per sq. ft. of plot dimension, which have to be paid on the time of making use of for an electrical energy connection. This cost can be relevant solely as soon as per plot, regardless of the class or load utilized for, and won’t be levied once more on extra connections or load enhancement requests. These prices are relevant to objects like transformers, poles and cables.
To account for rising infrastructure prices, the event cost can be adjusted yearly based mostly on the Wholesale Worth Index (WPI). Nonetheless, customers who’ve already paid ₹35 per sq. ft. underneath the earlier coverage is not going to be required to pay any extra quantity.
The fee rejected U.P. Energy Company Ltd’s (UPPCL) proposal to impose extra prices based mostly on the utilized load ( ₹17,500 per kW), calling it double charging. As an alternative, UPERC upheld the flat ₹70 per sq. ft. cost, guaranteeing a extra uniform and clear pricing construction.
UPERC justified the cost enhance by citing a considerable rise in tools prices for the reason that Ninth Modification to the Electrical energy Provide Code in 2017.
“The cost of key infrastructure components has increased by 23.63% to 76.73%, necessitating an update in development charges,” the fee mentioned within the order.
The UPPCL, in its proposal on April 27, 2024, demanded a rise within the growth prices, arguing the costs have been final revised in 2017. The company additionally submitted that the current guidelines didn’t allow it to problem energy connections in such undeveloped and unelectrified colonies if the variety of customers looking for energy connections was fewer.
OTHER KEY DECISIONS
• Shoppers who pay the event cost can be handled as if they’re inside 40 metres of the distribution mains, exempting them from extra variable line prices.
• Momentary connections (LMV-9) in these colonies may also require the event cost fee, nevertheless it is not going to be charged once more if the applicant later applies for a everlasting connection.
• The distribution community can be constructed utilizing STP poles for HT strains and PCC poles for LT strains, ideally utilizing AB cables to stop theft.
• Color coding {of electrical} tools can be launched for simple identification of such colonies.
• The Jhatpat Portal will enable on-line functions, and a separate accounting head can be created within the ERP system for higher transparency in fund utilisation.
• The scheme is not going to apply to colonies developed by growth authorities or housing boards, as electrical infrastructure prices are already included of their plot costs.