Customers have been caught off guard by the sudden increase in Uttar Pradesh’s power rates, which now include a recently implemented surcharge until April 2025. Under the cover of a “fuel surcharge,” the Uttar Pradesh Electricity Corporation Limited (UPPCL) has raised electricity rates by 1.24%. This mechanism has been inactive for almost five years.
In contrast to a traditional tariff increase that necessitates public notice, this new fee was implemented covertly, raising concerns among both residential and business customers. Similar to the pricing structure for petrol and diesel, the fee, which is based on changing fuel prices, will now be recalculated monthly.
This makes monthly budgeting more unpredictable because electricity expenses will now fluctuate according on market fuel prices and power use. However, most consumers are likely to experience an immediate increase in expenses rather than any respite, as increasing temperatures are already driving up power demand. For example, a customer who paid Rs 1,000 in March will now pay Rs 1,012.40 in April for the same use.
Through the Fuel and Power Purchase Adjustment Surcharge (FPPAS), the Uttar Pradesh Electricity Regulatory Commission has given distribution firms the authority to modify prices every month by the Multi-Year Tariff Regulation 2025. The state is implementing this technique for the first time.
Through the Fuel and Power Purchase Adjustment Surcharge (FPPAS), the Uttar Pradesh Electricity Regulatory Commission has given distribution firms the authority to modify prices on a monthly basis in accordance with the Multi Year Tariff Regulation 2025. The state is implementing this technique for the first time.
