The Uttar Pradesh Electricity Regulatory Commission (UPERC) has once again requested detailed information from the Uttar Pradesh Power Corporation Ltd (UPPCL) regarding the 10% fuel and power purchase adjustment surcharge (FPPAS) levied on electricity consumers for June 2026. According to available details, UPERC had approved a power purchase cost of Rs 4.94 per unit in its tariff order. However, UPPCL reported an actual power purchase cost of about Rs 5.86 per unit for March 2026. The difference between the approved and actual cost resulted in an additional burden of around Rs 1,610 crore, which the corporation proposed to recover through the June FPPAS.
Regulatory concerns and directives
Amid concerns over the calculation and recovery of the surcharge, the regulator on Wednesday directed UPPCL to furnish complete details by June 19 and made it clear that no further extension would be granted. Notably, UPERC on Wednesday clarified that it had never asked the utility to study practices followed by other state regulators. Instead, the commission said it had only sought details related to the surcharge formula, monthly FPPAS calculations and recovery mechanism.
Consumer advocacy response
Avadhesh Kumar Verma, chairman of Uttar Pradesh Rajya Vidyut Upbhokta Parishad, said, “Consumers should not be burdened with additional charges under FPPAS unless all calculations, data and regulatory procedures are transparently disclosed.”
This development underscores the ongoing tension between regulatory oversight and utility operations, as consumers face potential cost increases. The deadline set by UPERC aims to ensure accountability and transparency in the surcharge application process.
