UP Power Bills Rise 10% in June as UPPCL Adds Fuel Surcharge

Uttar Pradesh Power Corporation Limited (UPPCL) has added a 10% Fuel and Power Purchase Adjustment Surcharge (FPPAS) to electricity bills starting June 2026. The surcharge applies to all consumer categories—domestic, commercial, and industrial—across the state. This affects 3.73 crore consumers already facing rising living costs. The actual calculated adjustment was 20.61%, but regulators capped it at 10% per month.

Why the Surcharge Was Imposed

UPPCL introduced the FPPAS to recover additional costs incurred on power procurement and transmission in March 2026. Under Uttar Pradesh Electricity Regulatory Commission (UPERC) regulations issued March 26, 2025, distribution companies can pass through month-specific fuel and power purchase cost variations to consumers after a three-month delay. The surcharge recovered costs from March 2026 in June bills. The full calculated adjustment was higher, but regulations capped monthly recovery at 10%.

Regulator Questions the Calculation

On June 1, 2026, UPERC raised objections to how UPPCL calculated the surcharge. The regulator directed UPPCL to explain why nearly Rs 1,400 crore in old liabilities and past claims were included in the March 2026 calculations. UPERC clarified that FPPAS cannot recover historical arrears, one-time settlements, or judicial costs. The mechanism is designed solely for month-specific fuel and power purchase variations, not legacy dues.

Impact on Consumers and Political Response

The 10% surcharge increases financial burden on households and businesses already dealing with rising costs. Samajwadi Party MP Awadhesh Prasad warned that government-installed smart meters could push bills up by 100% in future. Consumer advocates argued that if calculations followed regulations properly, bills might have decreased instead of rising. The commission’s intervention is expected to provide relief to the state’s 3.73 crore electricity consumers.

Final Thoughts

UPERC’s intervention on June 1 may reduce the 10% surcharge if past liabilities are removed from calculations. Consumers should monitor revised bills in coming months as the regulator investigates UPPCL’s methodology.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.