UP Electricity Bills to Rise by 10% on Fuel Surcharge from June

UPPCL has announced a 10% increase in electricity bills for all consumers starting in June. This hike is a 'fuel surcharge' to compensate for rising fuel and power purchase costs, implemented under new UPERC regulations.

The Uttar Pradesh Power Corporation Limited (UPPCL) on Saturday issued a notification to all relevant authorities to implement a 10% increase in electricity bills, citing a 'fuel surcharge' due to rising fuel prices. The revised bills will be issued in the June billing cycle, with consumers required to pay an extra 10% on their electricity usage.

In a letter, Pankaj Saxena, the Chief Engineer of the Regulatory Affairs Unit (RAU), stated that the Uttar Pradesh Electricity Regulatory Commission (UPERC), through its notification dated March 26, 2025, has issued new regulations for electricity distribution under the Multi-Year Tariff (MYT) framework. He added that under these rules, a Fuel and Power Purchase Adjustment Surcharge (FPPAS) will be levied on consumers to account for fluctuations in fuel and power purchase costs incurred by distribution companies.

How the Fuel Surcharge Works

"As per the regulation, any extra power purchase and transmission costs incurred in a given month are recovered after a delay of three months. This means the additional cost incurred in March 2026 will be recovered from consumers in June 2026", stated Saxena.

He further added that "For March 2026, the surcharge has been calculated at 10% under Clause 16(4) of the MYT Regulations, 2025. This 10% FPPAS will therefore be added to electricity bills issued in June 2026 and will apply across all categories of consumers."

"The directive instructs distribution companies to implement this surcharge uniformly for all consumers as per the regulatory framework. A detailed calculation sheet has also been provided for reference and is to be uploaded on the official website for transparency," added Saxena.

The letter reads "Hon'ble Commission vide notification dated 26.03.2025 has issued Uttar Pradesh Electricity Regulatory Commission (MYT for Distribution) Regulations, 2025. As per the regulation, Fuel and Power Purchase Adjustment Surcharge (FPPAS) has to be charged in the nth month for incremental Power Purchase and Transmission Charges paid in the n-3rd month."

It further stated, "Fuel and Power Purchase Adjustment Surcharge (FPPAS) calculated for the month of March, 2026, as per regulation is to be charged in the month of June, 2026."

"According to clause 16(4) of MYT Regulation, 2025 FPPAS chargeable is 10% for the month of March, 2026, to be charged in the month of June, 2026. I have been directed to request you to implement the same for all categories of consumers as per the provisions of the regulation. To comply with the provision of the regulation, a detailed calculation sheet is attached for your reference and uploading the same on the website", the letter reads.

Rising Fuel Prices Add to Consumer Burden

Petrol and diesel prices have been hiked for the fourth time less than two weeks amid continued volatility in global crude markets and ongoing geopolitical tensions in West Asia.

Following the latest revision on Monday, petrol prices in Delhi crossed the Rs 100-mark, rising by Rs 2.61 to Rs 102.12 per litre, while diesel prices increased by Rs 2.71 to Rs 95.20 per litre. Similar hikes were witnessed across major metropolitan cities, including Kolkata, Mumbai and Chennai, adding to the burden on consumers and transport operators. (ANI)

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