- By Kamakshi Bishnoi
- Tue, 22 Apr 2025 01:35 PM (IST)
- Source:JND
After a gap of five years, electricity has become costlier in Uttar Pradesh as power companies have imposed a 1.24 per cent fuel surcharge on consumers. This change, effective from April, will impact 3.45 crore electricity users across the state, resulting in an additional burden of Rs 78.99 crore on the public. For example, if a consumer's electricity bill was Rs 1,000 in March, they will now pay Rs 12.40 extra in April due to the surcharge.
This surcharge system is part of the Multi Year Tariff Regulation-2025, which allows companies to adjust the Fuel and Power Purchase Adjustment Surcharge (FPPPA) monthly based on coal costs used in electricity generation. Accordingly, the May bills will reflect coal usage from February, making bills fluctuate every month depending on fuel costs.
Despite this being a monthly adjustment, electricity rates could rise significantly in the coming months. The Uttar Pradesh Electricity Regulatory Commission is currently reviewing the Annual Revenue Requirement (ARR) filings by power companies for FY 2025–26. A rate hike of 10–20 per cent for various consumer categories is anticipated within two to three months. Notably, electricity rates have remained unchanged in the state since 2019.
The Uttar Pradesh State Electricity Consumer Council has strongly opposed the fuel surcharge hike, highlighting that power companies already have a surplus of Rs 33,122 crore from consumers. Council President Awadhesh Verma argued that the Rs 78.99 crore fuel expense should have been adjusted from this surplus instead of burdening consumers. He criticised the Power Corporation for quietly passing the surcharge order last month, despite legal and ethical concerns.