UP Electricity Bills to Rise by 10% From June, Fuel Surcharge Triggered by Rising Costs

latest NewsUP Electricity Bills to Rise by 10% From June, Fuel Surcharge Triggered by Rising Costs

Lucknow, Uttar Pradesh, India May 30: The Uttar Pradesh Power Corporation Limited (UPPCL) has announced a 10% increase in electricity bills effective from the June billing cycle, citing a Fuel and Power Purchase Adjustment Surcharge (FPPAS) linked to escalating fuel and power procurement costs. The directive was formally issued to all distribution companies on Saturday.

In an official communication, Pankaj Saxena, Chief Engineer of the Regulatory Affairs Unit (RAU), said the revision is in line with new regulations notified by the Uttar Pradesh Electricity Regulatory Commission (UPERC) on March 26, 2025, under the Multi-Year Tariff (MYT) framework.

According to the regulations, any additional power purchase and transmission costs incurred by distribution companies in a given month are recovered from consumers after a three-month lag. This means the increased costs from March 2026 will now be passed on through bills issued in June 2026.

“As per Clause 16(4) of the MYT Regulations, 2025, the Fuel and Power Purchase Adjustment Surcharge calculated for March 2026 is 10%, and this surcharge will be added to electricity bills across all consumer categories,” Saxena clarified in the letter.

The UPPCL has instructed distribution companies to implement the surcharge uniformly and upload detailed calculation sheets on their official platforms to ensure transparency.

The notification reiterates that FPPAS is a mandatory component designed to adjust for monthly volatility in fuel and power purchase costs, a mechanism widely applied across the power sector to stabilise utility operations amid fluctuating resource prices.

Meanwhile, the hike comes at a time when petrol and diesel prices have surged for the fourth time in less than two weeks, driven by global crude market instability and geopolitical tensions in West Asia. In Delhi, petrol prices rose by ₹2.61 to ₹102.12 per litre, while diesel climbed by ₹2.71 to ₹95.20 per litre, with similar increases observed across Mumbai, Kolkata and Chennai.

Consumers across Uttar Pradesh are now preparing for higher monthly power bills as fuel-linked cost pressures continue to rise nationwide.

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