Customers in Uttar Pradesh may soon have to deal with a large hike in energy bills after almost six years of steady pricing. Under the existing pricing structure, power firms in the state have recorded a revenue shortfall of Rs 19,600 crore. To make up for these losses, they have sought a record 30% rise from the Uttar Pradesh Electricity Regulatory Commission (UPERC).

Instead of assuming complete bill recovery, the new Annual Revenue Requirement (ARR) plan was submitted on Monday. It reflects real revenue and expenditures based on a collection efficiency of 88% in the preceding fiscal year (2024–25). In comparison to last year’s ARR, which revealed a shortfall of Rs 9,206 crore, this adjustment has resulted in a sharp increase in the expected deficit.

An ARR proposal for Rs 1,13,923 crore for the fiscal year 2025–2026 was previously approved by the commission; however, it gave the electricity providers an additional week to provide updated data before starting the rate determination procedure. Despite state government subsidies, the deficit is expected to approach Rs 25,000 crore, according to the revised ARR.

Since an 11.69% rate increase in 2019 in response to the Lok Sabha elections, electricity rates in Uttar Pradesh have stayed the same. The regulatory body had kept pricing rises frozen for five years in a row despite previous deficiencies, which led to a consumer surplus of Rs 1,944.72 crore in the most recent fiscal year.

However, the public has objected to the anticipated 30% increase. A petitioner called Verma contested the electricity firms’ estimates before the commission on Monday, claiming that it is illegal and against the Multi Year Tariff Regulation 2025 to calculate revenue gaps based on collection efficiency.

Consumers across the state would be directly impacted by the Uttar Pradesh energy Regulatory Commission’s decision to review the ARR submissions and public objections before deciding on the updated energy rates.