Eyeing LS polls, UP govt mulls cutting power rates

In an apparent bid to gain political mileage in the forthcoming Lok Sabha elections, the Samajwadi Party (SP) government in Uttar Pradesh has changed its mind over hiking the power tariff and could in fact slash it.

Sources said the state government has asked the state power regulatory authority whether tariff for the domestic consumers can be lowered.  “A decision in this regard will be taken once the opinion of the regulator is received,” said an official of the UP Power Corporation.

Power officials said the government has been under pressure from various quarters, particularly SP leaders, to reduce the power tariff. Uttar Pradesh is buying powers from outside at a higher cost to meet its growing demand and supplying to its consumers at a much lower rate, which has resulted in substantial losses for the state, the official said.

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