UP power distribution firms to levy 10% surchage on energy bills under FPPAS
Lucknow, 30 May (HS): As Uttar Pradesh confronts rising summer temperatures and growing household prices, energy users across the state are expected to take another financial blow beginning in June. Uttar Pradesh Power Co
10 pc surchage on energy bills


Lucknow,

30 May (HS): As Uttar Pradesh confronts rising summer temperatures and growing

household prices, energy users across the state are expected to take another

financial blow beginning in June. Uttar Pradesh Power Corporation Limited

(UPPCL) issued a new order instructing power distribution firms to levy a 10%

fee on energy bills under the Fuel and Power Purchase Adjustment fee (FPPAS)

system.

The

new burden would apply to all types of users and will be reflected on power

bills issued during the June 2026 billing cycle. The move comes at a time when fuel

costs are already rising across the country, raising the cost of transportation

and basic necessities. Surcharge granted under the Uttar Pradesh Electricity

Regulatory Commission's Multi-Year Tariff (MYT) Regulations, 2025, which allow

power firms to recoup increasing fuel and transmission expenses from customers

after a set time period.

Consumers

in Uttar Pradesh will now have to pay an extra 10% on top of their usual

electricity rates. In June 2026, a fee

will be imposed to all invoices. Under the amended rate framework issued by the

Uttar Pradesh Electricity Regulatory Commission, the rise is consistent for

home, commercial, industrial, and other categories of electricity customers.

Surcharges

are tied to the Uttar Pradesh Electricity Regulatory Commission's Multi-Year

Tariff (MYT) Regulations, 2025, which were released on March 26, 2025.

According to these laws, electrical firms are allowed to recoup excess power

purchase expenses following a three-month adjustment cycle. This means that any

additional expenditures spent in one month might be applied to consumer bills

three months later. Officials highlighted that the current fee applied in June

corresponds to cost increases reported in March of 2026.

Order

was given to all electricity companies: In an official email, Pankaj Saxena,

Chief Engineer of the Regulatory Affairs Unit (RAU), directed all distribution

businesses to adopt the new surcharge immediately for all customer categories.

The decision also required agencies to post full computation sheets on official

websites to ensure openness regarding the changed charging structure.

Effects

on common consumers: The new electricity pricing is anticipated to put further

financial strain on households already grappling with growing summer power

demand. With air conditioners, coolers, and fans running continually during

strong heatwave conditions, power use often jumps dramatically in June, making

the premium especially substantial for middle-class and low-income consumers.

Commercial enterprises and small companies are also expected to see greater

operational costs as a result of the changed invoicing system.

Why

is the surcharge imposed? According to UPPCL, the new increase was implemented

to offset higher expenditures borne by power distribution firms for fuel

purchases and energy transmission. Officials noted variations in fuel prices

and electricity procurement costs in March 2026 increased discoms' financial

burden, which is now being passed on to customers via the FPPAS mechanism.

Recent

fuel price changes put petrol prices in Delhi beyond Rs 100 per litre, while

diesel prices rose sharply. Similar patterns were observed in Mumbai, Kolkata,

and Chennai, contributing to inflationary pressures across industries. With

both energy and fuel costs rising, customers may expect a larger increase in

home and transportation expenditures in the coming weeks.

Hindusthan Samachar / Abhishek Awasthi


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