Taking new power connections in undeveloped colonies dearer now
UPERC doubles development charges, but scraps condition that required at least 25% of plot owners to construct houses in order to apply for electrification in undeveloped colonies
: Taking new power connections in undeveloped and un-electrified colonies will now become costlier. This is because the U.P. Electricity Regulatory Commission (UPERC) has doubled the development charges from ₹35 to ₹70 per sq. ft. At the same time, the commission has provided relief to those facing delays by scrapping the requirement of 25% plot owners applying for electrification in these colonies.
“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 said.
“Now, the distribution licensee can develop the required infrastructure without waiting for a minimum number of applicants,” he added.
UPERC has increased the one-time development charge to ₹70 per sq. ft. of plot size, which must be paid at the time of applying for an electricity connection. This charge will be applicable only once per plot, irrespective of the category or load applied for, and will not be levied again on additional connections or load enhancement requests. These charges are applicable to items like transformers, poles and cables.
To account for rising infrastructure costs, the development charge will be adjusted annually based on the Wholesale Price Index (WPI). However, consumers who have already paid ₹35 per sq. ft. under the previous policy will not be required to pay any additional amount.
The commission rejected U.P. Power Corporation Ltd’s (UPPCL) proposal to impose additional charges based on the applied load ( ₹17,500 per kW), calling it double charging. Instead, UPERC upheld the flat ₹70 per sq. ft. charge, ensuring a more uniform and transparent pricing structure.
UPERC justified the charge increase by citing a substantial rise in equipment costs since the Ninth Amendment to the Electricity Supply Code in 2017.
“The cost of key infrastructure components has increased by 23.63% to 76.73%, necessitating an update in development charges,” the commission said in the order.
The UPPCL, in its proposal on April 27, 2024, demanded an increase in the development charges, arguing the charges were last revised in 2017. The corporation also submitted that the present rules did not permit it to issue power connections in such undeveloped and unelectrified colonies if the number of consumers seeking power connections was fewer.
• Consumers who pay the development charge will be treated as if they are within 40 metres of the distribution mains, exempting them from additional variable line charges.
• Temporary connections (LMV-9) in these colonies will also require the development charge payment, but it will not be charged again if the applicant later applies for a permanent connection.
• The distribution network will be built using STP poles for HT lines and PCC poles for LT lines, preferably using AB cables to prevent theft.
• Colour coding of electrical equipment will be introduced for easy identification of such colonies.
• The Jhatpat Portal will allow online applications, and a separate accounting head will be created in the ERP system for better transparency in fund utilisation.
• The scheme will not apply to colonies developed by development authorities or housing boards, as electrical infrastructure costs are already included in their plot prices.