Uttar Pradesh: Electricity bills to increase by 10% from June
What's the story
The Uttar Pradesh Power Corporation Limited has announced a 10% increase in electricity bills, effective from June. The decision comes as part of a Fuel and Power Purchase Adjustment Surcharge (FPPAS) levied on consumers to offset the rising costs of fuel and power procurement by electricity distribution companies. The revised tariffs will be applicable across all consumer categories in the state.
Cost recovery
Understanding the FPPAS mechanism
The FPPAS mechanism enables power utilities to pass on the burden of increased fuel and power purchase costs to consumers. Pankaj Saxena, Chief Engineer of the Regulatory Affairs Unit (RAU), explained in a letter that any additional power purchase and transmission costs incurred in a month are recovered after a three-month delay. This means that extra costs incurred in March 2026 will be recovered from consumers in June 2026.
Tariff calculation
Surcharge calculated under MYT Regulations, 2025
Saxena further clarified that the surcharge for March 2026 has been calculated at 10% under Clause 16(4) of the MYT Regulations, 2025. This means that a 10% FPPAS will be added to electricity bills issued in June 2026 and will apply across all consumer categories. The decision comes amid widespread reports of power cuts and supply shortages across Uttar Pradesh during peak summer demand season.
Consumer impact
Consumer groups criticize timing of hike
The revised electricity tariffs will affect both households and commercial establishments in Uttar Pradesh. The exact impact will depend on individual consumption levels and tariff categories. Consumer groups have criticized the timing of the hike, saying it puts an unsustainable burden on households already struggling with rising living costs. Many have also questioned the rationale behind the increased charges amid frequent supply disruptions in several districts.
Political response
Minister defends hike, opposition raises concerns
Uttar Pradesh Minister Narendra Kashyap defended the hike, citing the ongoing war crisis in West Asia as a reason for the government's decision. He said, "Under Yogi Ji's leadership, no taxes or bills have been increased in Uttar Pradesh over the last nine years." However, Samajwadi Party MP Awadhesh Prasad claimed that newly installed meters would increase electricity bills by up to 100%.