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The report analyzes the financial instability of electricity distribution companies (discoms) in Uttar Pradesh, where a significant revenue gap of INR 21,486 crores existed in FY16. It examines consumer attitudes toward tariff hikes, revealing that while most expect increases, there is strong opposition to them unless linked to service improvements. The report also evaluates the UDAY scheme, finding that while it has reduced interest costs through bond issuance, progress on key operational milestones like smart metering and feeder segregation has been limited. Recommendations include improving rural metering, implementing targeted compensation for vulnerable users, and enhancing communication strategies to build public support for cost-reflective tariffs.