UPERC Seeks Explanation for Sharp Rise in Power Purchase Surcharge
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has formally requested a detailed justification from the Uttar Pradesh Power Corporation Ltd (UPPCL) regarding a significant 10% increase in the fuel and power purchase adjustment surcharge (FPPAS) for February. This marks a substantial jump compared to the 2.33% surcharge levied in January, raising concerns about the financial burden on consumers.
Regulatory Scrutiny Over Power Purchase Costs
In its inquiry, UPERC has specifically asked UPPCL to explain how such expensive power was procured despite a lower approved rate. The regulatory body highlighted that in its tariff order dated November 22, 2025, it had approved an average power purchase cost (APPC) of Rs 4.94 per unit. However, UPPCL reported a significantly higher purchase cost of Rs 5.79 per unit for November, prompting scrutiny over the discrepancy.
Historical Context of Surcharge Variations
The commission noted that a surcharge of 5.56% was the second highest levied in December to adjust for fuel cost variations from September 2025. This historical data underscores the volatility in power purchase expenses. In September, Uttar Pradesh recorded its highest power demand of 30,255 MW, with power purchased at Rs 4.88 per unit. In contrast, November saw a lower power demand of only 19,341 MW, yet the corporation bought power for Rs 5.79 per unit, indicating a puzzling inverse relationship between demand and cost.
Implications for Consumers and Regulatory Oversight
This development raises important questions about the transparency and efficiency of power procurement practices in Uttar Pradesh. The sharp increase in the FPPAS could lead to higher electricity bills for consumers, emphasizing the need for stringent regulatory oversight. UPERC's intervention aims to ensure that power purchases are conducted in a cost-effective manner, aligning with approved tariffs to protect consumer interests.
As the situation unfolds, stakeholders will be closely monitoring UPPCL's response to UPERC's queries, which could have broader implications for electricity pricing and governance in the state. The outcome of this regulatory review may set a precedent for future power purchase adjustments and surcharge implementations across India.
