
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