Udaipur Chamber of Commerce Objects to Industrial Electricity Rate Hike

Udaipur: The Udaipur Chamber of Commerce & Industry (UCCI) has expressed deep concern over the recent increase in electricity tariffs for industrial and general consumers announced by the State Electricity Regulatory Commission.

UCCI President, Mr. Manish Galundia, stated that Prime Minister Narendra Modi, in his Independence Day address, had emphasized the government’s commitment to providing relief to end consumers from rising prices. In line with this, the central government had reduced GST rates and removed two GST slabs on consumer goods to lower prices and provide relief to the public.

However, at this critical juncture, the state regulatory commission imposed a regulatory surcharge of Rs. 1 per unit, which exceeds the 3% annual revenue limit prescribed for DISCOMs by the Supreme Court, making it legally questionable. Additionally, the fixed charges were increased from Rs. 100 to Rs. 350 per month, raising electricity costs by Rs. 0.40 to Rs. 1.25 per unit. Industrial rebates were reduced, and certain surcharges were increased.

Mr. Galundia pointed out that these increases in industrial and commercial electricity rates contradict the Prime Minister’s pro-public policy and will raise production costs, ultimately pushing higher prices onto consumers and the middle class.

Furthermore, a new ‘Parallel Operation Charge’ of Rs. 12–28 per kVA has been imposed on renewable energy plants, which runs contrary to the central and state government’s renewable energy promotion policies.

UCCI urged the state government and electricity regulatory authorities to reconsider the decision and immediately suspend or revoke the industrial electricity rate hike. The chamber emphasized that providing relief to industries is crucial for strengthening the ‘Atmanirbhar Bharat’ initiative.

The UCCI appealed to the state government to re-evaluate the decision in the interest of both industries and general consumers to ensure that industrial growth in the state is not adversely affected.