Electricity Tariff Hike Imposed in Uttar Pradesh (UP) for Commercial & Industrial Sectors

uppcl electricity rates per unit 2019

If you are a business owner or own a commercial or Industrial property in Uttar Pradesh, get ready to pay more money for your monthly electricity consumption very soon. The electricity tariffs in the state of Uttar Pradesh have been increased by up to 7% for Commercial and Industrial category consumers. The hike which has left industry leaders shocked was announced just a few days back but the proposal to increase the tariffs in the state was submitted two months back in June 2019 by the UP Power Corporation Limited(UPPCL). The Uttar Pradesh Electricity Regulatory Commission has given the go-ahead to increase the tariffs with certain modifications.

By how much has the Electricity tariff Increased for Commercial and Industrial Businesses in UP?

For small and medium power industries (LT side), the hike is 4% for up to 1000 units, 1% from 1001 to 2000 units and again 4% for the units above 2000 whereas for the large power industrial (HT side) consumer category, there has been a hike of 7% from ₹6.65 per unit to ₹7.1 per unit. This is a massive increase and will directly hit the overall profit margins of businesses in the state. Also, for the agriculture consumer category, a hike of 9% has been levied under the urban schedule and 15% for the rural schedule.

Here’s a snapshot of tariff increase in the commercial and industrial categories:

Electricity Hike in Uttar Pradesh

What is the Reason for the Electricity Hike in UP and how can rooftop solar help?

The hike as was stated by UPERC at the time of the proposal is as a reaction to the increasing expenditures and decreasing revenue as being faced by the DISCOMs, and the hike is a measure taken to improve their financial efficiency.

While this measure may seem necessary for the DISCOMS, it should be noted that these hikes have a direct impact on consumers across categories, especially commercial and industries establishments, which tend to have high electricity consumption. And, as we all know, this is not the first time that the authority has had to increase the electricity tariffs in the state, as the last tariff increase was introduced just two years back in Nov 2017. In such a scenario where tariffs are uncertain and are dependent on various factors such as transmission cost and the cost of fossil fuels, harnessing solar energy for commercial and industrial setups is a smart way to deal with this sudden tariff surge. By installing a solar system, any business owner can deflect the impact of such hikes for the next 25 years.

There are numerous examples of how going solar has helped commercial and industrial establishments mitigate the impact of high tariffs and save millions on power bills every year. Below is a video of a few industries that have gone solar with MYSUN and are now generating their own power thereby making huge savings on their power expenses:

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If you are a business owner or a key deciding member of a business with huge power consumption based in Uttar Pradesh this is just the right time to Go solar and shield your business from this hike and many more for the next 25 years to come. Schedule your site survey today or write to our solar advisors at [email protected] and MYSUN engineers will get the most efficient solar system designed as per your businesses’ unique profile.

You may also call us on +91 8448380218 to connect.

To know the solar saving potential of your business instantly, run our solar calculator now and with just two inputs, you will have a Free Personal Solar Scorecard with you for your business.