How much discount will be given in electricity rates by Yogi Government?
Reportedly the yogi government of Uttar Pradesh has given a subsidy of Rs 3.50 per unit to provide electricity to families living below the poverty line at just three rupees per unit. The government has also opened the box for farmers. The government has given a subsidy of Rs 10,067 crore to provide free electricity to farmers for irrigation. Let us tell you that out of 3,65,86,814 electricity consumers in the state, 3,21,57,293 are only domestic consumers.
Perhaps in fact, due to the rising price of coal etc., the average cost of electricity supply in the state is currently Rs 7.86 per unit. By increasing the electricity rate of commercial and industries etc. through cross subsidy, the electricity Regulatory Commission keeps the electricity rates of the poor, farmers and low consumption domestic consumers relatively low, but even in such a situation, the electricity of domestic consumers was costing Rs 6.85 per unit this time. The government has maintained the electricity rate of domestic consumers at Rs 3 to Rs 6.50 per unit by giving a subsidy of Rs 7,445 crore.
Moreover it is worth noting that out of the total domestic consumers, 1,69,99,611 are lifeline consumers (connections with one kilowatt load and consumption of less than 100 units per month) of urban and rural areas. The government has given Rs 2,386 crore (Rs 3.50 per unit) to the Power Corporation to provide them electricity at just Rs 3 per unit. To provide some relief to other domestic consumers, the government has given subsidy of 35 paise to Rs 1.35 per unit. While a subsidy of Rs 1.35 per unit has been given on electricity consumption up to 150 units per month, the government has given a subsidy of 85 paise per unit on consumption of 151 to 300 units and 35 paise per unit on electricity consumption of more than 300 units. This is the reason why 99,44,736 domestic consumers in urban areas have been given a maximum discount of Rs 6.50 per unit instead of Rs 6.85 per unit.