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Electricity bills are expected to see a hike across India as Supreme Court on Wednesday, August 6, ordered all states and Union Territories (UTs) to clear pending dues of the power distribution companies (discoms) which is over ₹1.5 lakh crore.
The court was hearing the matter filed by Delhi-based discoms, but expanded the scope of the matter while issuing notices to all the state governments with pending dues which are classified as "regulatory assets".
A bench of Justices PS Narsimha and Atul S Chandurkar directed the authorities to clear the dues within next four years. The bench ordered the State Electricity Regulatory Commissions (SERCs) to draft a time-bound plan to recover the due amounts.
It also directed the Appellate Tribunal for Electricity (APTEL) to supervise the implementation of its order.
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The dues have exceeded to ₹1.5 lakh crore across the country after being accumulated for decades, as per India Today.
"Disproportionate increase in long-pending regulatory assets ultimately puts burden on the consumer. Inefficient and improper functioning of the Commission and acting under dictation can lead to
The Court also cautioned the authorities against sudden increase in the electricity tariff rates which could burden the consumers. "The tariff increase must be reasonable and regulatory assets should not exceed statutory percentage," the bench noted.
The hike of electricity rates would be implemented across all categories such as domestic, commercial and industrial use.
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