Uttar Pradesh Power Corporation to Impose Record Fuel Surcharge in February
The Uttar Pradesh Power Corporation Ltd (UPPCL) is set to collect its highest-ever fuel and power purchase adjustment surcharge (FPPAS) from consumers during the month of February. According to the official FPPAS notification, a substantial surcharge of 10% has been levied to adjust for fuel cost variations recorded in November 2025.
Unprecedented Collection Expected
This single-month collection is projected to garner approximately Rs 616 crore from electricity consumers across Uttar Pradesh. To put this in perspective, the previous second-highest surcharge of 5.56% was imposed in December 2025 to account for fuel cost variations from September 2025.
Understanding the Fuel Cost Dynamics
The significant surcharge reflects notable fluctuations in both power demand and electricity procurement costs. In September 2025, Uttar Pradesh recorded its highest-ever power demand of 30,255 megawatts, with electricity purchased at Rs 4.88 per unit. By contrast, November 2025 saw a substantially lower demand of only 19,341 megawatts, yet the corporation paid a higher rate of Rs 5.79 per unit for electricity procurement.
Regulatory Framework and Automatic Calculation
Responding to queries about the 10% surcharge decision, UPPCL chairman Ashish Kumar Goel explained the regulatory mechanism behind the calculation. "The fuel surcharge is applied automatically based on the cost of coal," Goel stated. "Whatever coal companies charge us becomes the basis for calculating this surcharge. Similarly, the cost incurred by power producers — who generate electricity using that coal — also gets passed through to us in an automatic manner."
Goel emphasized that "there is a well-defined formula for this calculation, duly approved by the UP Electricity Regulatory Commission. The FPPA surcharge is imposed strictly according to this approved formula." He further clarified that "the surcharge is always levied with a lag of one to two months, meaning the rate applicable now is based on coal cost data received two months earlier. Because of the higher cost of coal in that billing cycle, the surcharge has come out to 10% — but it is still entirely formula-driven."
Procurement and Regulatory Compliance
The UPPCL chairman detailed the procurement process, noting that "NTPC, UPPCL's power plants, and the plants planned for the future — all procure coal through Coal India or other authorized sources." He assured that "whatever cost is billed to us by these suppliers is processed through the regulatory formula. Every tariff component collected from consumers is approved by the electricity regulatory commission, ensuring full compliance with regulatory norms."
Consumer Advocacy Perspective
UP Rajya Vidyut Upbhokta Parishad chairman Avadhesh Kumar Verma, who also serves as a member of the state advisory committee, provided additional context. He noted that "UPPCL claims the actual power purchase rate in November 2025 was Rs 5.79 per unit, compared to the UPERC approved tariff of Rs 4.94 per unit. Based on this difference, the corporation has ordered additional recovery from consumers."
This record surcharge collection comes at a time when electricity consumers in Uttar Pradesh are already navigating various economic pressures. The substantial Rs 616 crore collection represents a significant financial impact on households and businesses across the state, highlighting the direct connection between global fuel markets and domestic electricity pricing.
