The increase in power tariff announced by the Uttar Pradesh Electricity Regulatory Commission (UPERC) on August 1, will adversely affect MSMEs in the poll bound state. MSMEs in U.P. are already battling economic slowdown and frequent power cuts.

UPERC has announced a four per cent increment in power tariff for MSMEs, but no hike for domestic consumers and heavy industry. Uttar Pradesh Power Corporation Limited will notify the hike in next seven days. New power tariff will come into effect from August 10, UPERC circular said.

Although average power tariff hike is less than last year, the fact that heavy industries have been given the benefit of zero-tariff hike is causing heartburn to SMEs in the state. Tariff for small and medium scale industries will be increased from Rs 7.54 per unit to Rs 7.84 per unit which is a 3.99 per cent hike. Commercial establishments like shops and commercial complex and malls will see a hike of 7.24% with the average tariff being increased from 7.47 per unit to 8.01 per unit.

“This is an unexpected big blow for SMEs which are already fighting for their existence. Since last few years, small units are battling with many problems in Uttar Pradesh. This industry needs special treatment from government. Instead this sector is getting worse day by day with increased circle rate, power tariff etc. We are organizing a meeting soon to discuss our next course of action”, said V. K Seth, Secretary, Noida Entrepreneurs Association.

EME owners are crying wolf over the power hike. Noida based buying agency RMS Associates’ President Manoj Rana said that power tariff is already very high for this sector in the state and once again such a hike is going to create a crisis for their existence itself.

Executive Officer at Indian Industries Association Rishabh Pathak said that government has been increasing the power tariff for industry on a regular basis. Now many entrepreneurs are even thinking to operate from other states. He also demands that there should be a separate tariff for night and day.

Meerut Scissors Cluster’s Vice President Sharif Ahmed said that this decision of regulatory board will badly hurt the industry since it will increase cost of their product thereby reducing the demand and hence lowering their revenue.