Electricty Bill: Approximately 3.7 crore electricity users in Uttar Pradesh, who faced higher electricity bills in June, are set to receive significant relief in July. Following the Uttar Pradesh Electricity Regulatory Commission’s (UPERC) instructions, the fuel surcharge has been recalculated and reduced by 4.43%. This reduction will be reflected in the electricity bills for July, easing the burden after the steep charges in June.
What caused the rise in electricity bills in June?
In June, a 10% fuel surcharge was added to the electricity bills, leading to a considerable spike in monthly expenses for consumers. This increase prompted numerous complaints statewide, questioning the calculation of the surcharge. Upon investigation, the Uttar Pradesh Power Corporation Limited (UPPCL) acknowledged that the surcharge was determined by factoring in past unpaid bills along with the actual power purchase costs for March, resulting in an inflated surcharge.
Instructions for recalculation
Once the issue was identified, the UPERC requested a response from the power corporation and clarified that the fuel surcharge should only be based on the actual costs incurred for power purchases during the specific month. Including previous dues contradicts regulatory standards. In line with the Commission’s guidance, the surcharge for July was recalibrated, leading to a 4.43% reduction. This adjustment will benefit all electricity consumers across the state.
Anticipated savings of Rs 358.31 crore
The Commission emphasized that fuel surcharges must be calculated solely on the actual consumption for the month in question. Incorporating arrears from earlier months breaches established regulations. Following the Commission’s orders, the July surcharge was recalculated, resulting in negative surcharge rates that will directly benefit electricity consumers financially.
According to sources, the revised surcharge is expected to benefit consumers across Uttar Pradesh by approximately Rs 358.31 crore. The Consumer Council welcomed the decision. State Electricity Consumer Council Chairman Awadhesh Kumar Verma said the actual cost of purchasing electricity in April was lower than initially estimated, making it possible to reduce the fuel surcharge in July.
Consumers will get benefit of crores of rupees
The revised fuel surcharge is expected to provide a total relief of approximately Rs 358.31 crore to Uttar Pradesh electricity consumers. Welcoming the decision, Awadhesh Kumar Verma, president of the State Electricity Consumer Council, said that the actual cost of power purchase in April was lower than previously estimated. Therefore, the fuel surcharge has been reduced in July.
Calling it a major victory for consumers, he said the additional fuel surcharge collected in June should also be investigated. If the investigation proves that consumers were overcharged, the electricity department should refund that amount.
What is fuel surcharge?
Fuel surcharge is an additional charge added to electricity bills based on fluctuations in the cost of power generation and power purchase from external sources. If power purchase costs increase, the surcharge increases. However, if costs decrease, the surcharge decreases, resulting in lower bills for consumers.