LUCKNOW: The Uttar Pradesh Electricity Regulatory Commission (UPERC) has significantly revised Noida Power Company Ltd’s (NPCL) revenue surplus for FY 2023-24, reducing it from Rs 1,500.63 crore to Rs 593.81 crore, a decline of about Rs 906.82 crore, following a detailed re examination of multiple tariff related issues as directed by the Appellate Tribunal for Electricity (APTEL).The revised figures were issued in UPERC’s order dated June 17, after the Commission revisited several components of NPCL’s aggregate revenue requirement (ARR) covering the period from FY 2018-19 to FY 2023-24.The exercise was undertaken in compliance with APTEL orders arising from a series of appeals filed by NPCL against earlier tariff and true up orders.True-up is the regulator’s final check of a discom actual income and expenses after the year ends, to see whether it earned or spent more than originally estimated while fixing electricity tariffs.According to the order, the reduction in surplus is not linked to a single factor.UPERC found that several of NPCL’s expenses were higher than what had been considered earlier. These included the cost of purchasing power, infrastructure spending, loan-related costs and other operational expenses.Once these revised costs were taken into account, the company’s surplus came down significantly.This led to NPCL’s surplus for FY 2023-24 being revised to Rs 593.81 crore from the earlier Rs 1,500.63 crore, according to the Commission’s final calculations.Meanwhile, the Uttar Pradesh Rajya Vidyut Upbhokta Parishad (UPRVUP) has sought a review of the order, saying the change could affect future tariff calculations and consumer benefits.UPRVUP chairman Avadhesh Kumar Verma said the revised surplus may impact the tariff rebate currently available to consumers in Greater Noida and nearby areas.“We have urged the commission to examine the issue and protect consumer interests. We have also raised concerns that litigation costs incurred by NPCL are ultimately recovered through electricity tariffs, increasing the burden on consumers,” he added.There are nearly 2.5 lakh power consumers of NPCL.A large surplus in a power utility’s accounts can help support tariff rebates, limit future tariff hikes and provide benefits to consumers through regulatory adjustments.
