The Uttar Pradesh Power Corporation Limited (UPPCL) issued a clarification on Saturday regarding the proposed 10% fuel and power purchase adjustment surcharge (FPPAS) for June 2026. The corporation emphasized that this surcharge is temporary and should not be misinterpreted as an increase in electricity tariffs.
Base Tariff Unchanged for Six Years
UPPCL stated that the base electricity tariff for consumers in Uttar Pradesh has remained unchanged for nearly six years. The proposed FPPAS for June 2026 is a temporary and variable surcharge applied under the provisions of the Uttar Pradesh Electricity Regulatory Commission (UPERC), based on fluctuations in actual power procurement costs.
How FPPAS Is Calculated
According to UPPCL, the FPPAS is determined under the Multi-Year Tariff (MYT) Regulations, 2025, notified by UPERC. It is calculated based on the difference between the actual power purchase cost and the cost approved by the regulator for a period three months prior. As a result, the surcharge varies every month and can even turn negative, providing relief to consumers.
Recent Examples of Variability
Citing recent examples, UPPCL noted that the FPPAS stood at 10% in February 2026 but fell to minus 2.42% in March 2026. Between April 2025 and June 2026, the adjustment remained both positive and negative at different times, indicating that it is neither a permanent charge nor a reflection of any tariff hike.
Reasons for Proposed June Surcharge
The utility attributed the proposed 10% FPPAS for June mainly to certain one-time payments made in compliance with orders of the Appellate Tribunal for Electricity. These include arrears payable to NTPC towards ash transportation charges and settlement of pending dues of previous years to the Central Transmission Utility, which temporarily increased power procurement costs.
UPPCL reassured consumers that the surcharge is not a permanent increase and will be adjusted in subsequent months based on actual costs.
