UP to face price hike in power supply as SC lifts stay

New Delhi, July 2 (UNI) The Supreme Court today vacated a stay granted by the Allahabad High Court against a notification issued by the Central Electricity Regulatory Commission(CERC), announcing an increase in the rate of power from Rs 5.70 per unit to Rs 7.45 per unit to those states which were drawing power from the National Grid beyond their alloted quota.

The CERC had come in appeal against the interlocutory order of the Allahabad High Court, dated June 5,2007, passed on a writ petition filed by the Uttar Pradesh Power Corporation (UPPC) Ltd against the notification.

The impugned notification was issued by the CERC in order to check the increasing tendency among states to draw power from the National Grid in excess of their alloted quota.

A vacation Bench, comprising Justices Tarun Chatterjee and P K Balasubramanyan, vacated the stay which may have adverse effect on the electricity consumers, both domestic as well as industrial since the UPPC will have to pass on the financial burden to the consumers by increasing the electricity rates.

Now Uttar Pradesh will have to pay about Rs 1.75 extra for each additional unit drawn in addition to its alloted quota from the national pool.

The High Court had stayed the notification on the ground that the decision of the four-member bench headed by CERC chairman had been reviewed by a two-member bench of the commission which is illegal.

UNI