Energy bills up by 2.36% for June-July period
The reduction resulted from the fuel and power purchase adjustment surcharge (FPPAS) decreasing from 2.51% last month to 2.36% this month.
In the previous month, consumers paid 2.51% above the tariff set for this financial year. For the current period, consumers paid only 2.36% above the tariff, resulting in a 0.15% decrease compared to the previous month.
FPPAS was levied in addition to the tariff determined by the regulator for the financial year.
This surcharge was applied monthly under an amendment to MPERC, allowing distribution companies (discoms) to raise tariffs each month since the last fiscal.
Sources stated that the FPPAS for June 24 to July 23, 2025, was based on the difference between the actual power purchase cost and the estimated cost for April this year. According to an amendment to MPERC Regulations 2021 last fiscal, the regulator permitted FPPAS to be "calculated and billed by the distribution licensee to consumers automatically, without undergoing the regulatory approval process, on a monthly basis.
"
The regulator decided the power tariff based on the estimated cost of energy production for the financial year. If production costs increased or decreased after the fiscal year ended, discoms move 'true up petitions' before the regulator. Under new regulations, discrepancies between estimated and actual fuel costs for a month were applied to consumers in the following month as a revised tariff.
Additionally, during a hearing on the discom's actual overall annual revenue requirement (ARR) petition, the discom requested the regulator to approve a 7.52% increase in the power tariff for the financial year 2025-26 starting from April 1. However, the regulator approved a 3.46% hike for this year. The current FPPAS was in addition to this 3.46% increase in the regular tariff set by the regulator for this financial year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
25-07-2025
- Time of India
Power bills to cost 0.23% more this month
Bhopal: Energy bills will be dearer by 2.59% for this month — between July 24 and Aug 23 and will cost 0.23% more than the previous month due to the fuel and power purchase adjustment surcharge (FPPAS). The fuel and power purchase adjustment surcharge (FPPAS) is levied over and above the tariff decided by the regulator for this financial year. The levying of FPPAS month on month is being done under an amendment of the Madhya Pradesh Electricity Regulatory Commission (MPERC) that allows discoms to increase the tariff month on month since the last fiscal. The FPPAS for the previous month was 2.36%, and for the current corresponding period, it is 2.59%, which means during the previous month consumers paid 2.36% above the tariff decided for the financial year, while consumers will have to pay 2.59% more in the current month. Thus, consumers will be paying 0.23% more than the previous month. Sources said that the FPPAS for July 24 and Aug 23, is based on difference between the actual power purchase cost and the estimated power purchase cost decided by the MPERC in May for this financial year. As per an amendment to MPERC Regulations 2021, the regulator allowed FPPAS to be "calculated and billed by the distribution licensee to consumers, automatically, without going through the regulatory approval process, on a monthly basis. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo " The power tariff is decided by the regulator on the basis of the estimated cost of production of energy for a financial year. If there is an increase or decrease in costs after the end of the fiscal, discoms move 'true up petitions' before the regulator. After new regulations, the difference in the estimated cost of fuel for production in a particular month and the actual cost can be levied on consumers in the next month in the form of a revised tariff. Besides, the hearing on the actual overall annual revenue requirement (ARR) petition of the discom, in which the discom urged the regulator to allow it to increase the power tariff by 7.52% for the financial year 2025-26 starting April 1, however, the regulator has allowed a hike of 3.46% for this year. This FPPAS will be above this 3.46% hike decided for this financial year in regular tariff by the regulator.
Time of India
27-06-2025
- Time of India
Energy bills up by 2.36% for June-July period
Bhopal: Energy bills will be increased by 2.36% for the period from June 24 to July 23. However, compared to the same period last month, between May 24 and June 23, the power tariff will be 0.15% cheaper. The reduction resulted from the fuel and power purchase adjustment surcharge (FPPAS) decreasing from 2.51% last month to 2.36% this month. In the previous month, consumers paid 2.51% above the tariff set for this financial year. For the current period, consumers paid only 2.36% above the tariff, resulting in a 0.15% decrease compared to the previous month. FPPAS was levied in addition to the tariff determined by the regulator for the financial year. This surcharge was applied monthly under an amendment to MPERC, allowing distribution companies (discoms) to raise tariffs each month since the last fiscal. Sources stated that the FPPAS for June 24 to July 23, 2025, was based on the difference between the actual power purchase cost and the estimated cost for April this year. According to an amendment to MPERC Regulations 2021 last fiscal, the regulator permitted FPPAS to be "calculated and billed by the distribution licensee to consumers automatically, without undergoing the regulatory approval process, on a monthly basis. " The regulator decided the power tariff based on the estimated cost of energy production for the financial year. If production costs increased or decreased after the fiscal year ended, discoms move 'true up petitions' before the regulator. Under new regulations, discrepancies between estimated and actual fuel costs for a month were applied to consumers in the following month as a revised tariff. Additionally, during a hearing on the discom's actual overall annual revenue requirement (ARR) petition, the discom requested the regulator to approve a 7.52% increase in the power tariff for the financial year 2025-26 starting from April 1. However, the regulator approved a 3.46% hike for this year. The current FPPAS was in addition to this 3.46% increase in the regular tariff set by the regulator for this financial year.
Time of India
29-05-2025
- Time of India
Thermal PPAs return after a decade as power demand, capacity rise: ICRA
New Delhi: Long-dormant long-term thermal power purchase agreements (PPAs) are making a comeback, with three states awarding 4,800 MW of contracts in the past one year, reflecting a renewed focus on energy security amid rising power demand and renewable integration, ICRA said. Maharashtra, West Bengal and Uttar Pradesh finalised 1,600 MW each under competitive bidding, with tariffs in the range of ₹5.4 to ₹5.5 per unit. This marks the first major revival of long-term coal-based PPAs in nearly a decade. The return of baseload contracting comes as electricity demand in India is projected to grow by 5 to 5.5 per cent in FY2026, following a 7.6 per cent rise in FY2025. Total demand reached 1,826 billion units last fiscal and is expected to remain strong, supported by load from electric vehicles, data centres, and green hydrogen production. Over 40 GW of thermal power capacity is under construction, while total capacity addition in FY2026 is projected at 44 GW—dominated by renewable and thermal segments, according to the credit rating agency. Thermal plant load factor (PLF) is expected to remain at 70 per cent in FY2026, up marginally from 69.5 per cent in FY2025. Coal stocks at domestic plants stood at a five-year high of 19.7 days as of May 21, 2025. Imports are likely to account for 6 per cent of coal consumption in FY2026, compared to 6.9 per cent in FY2025. Short-term power tariffs are expected to average ₹4.0–₹4.5 per unit in FY2026. In FY2025, the Indian Energy Exchange recorded average tariffs of ₹4.4 per unit in the day-ahead market and ₹4.3 per unit in the real-time market. However, distribution continues to lag behind generation and transmission. ICRA retained a negative outlook on the discom segment. Book losses at state discoms stood at ₹572 billion in FY2024, while gross debt rose to ₹7.4 lakh crore from ₹6.6 lakh crore in FY2023. The cash gap—difference between average cost of supply and tariff—is projected at ₹0.35 per unit in FY2026. Tariff hikes have remained muted, with a median increase of 1.5 per cent across 28 states issuing tariff orders for the year. 'Timely implementation of RDSS and FPPAS rules for tariff recovery remains key for improving discom finances,' ICRA noted. The outlook remains stable for thermal generation, renewables and transmission. Transmission investment requirements are pegged at ₹4.5 lakh crore by FY2030, mainly to support renewable evacuation. ICRA reported 36 rating upgrades and 10 downgrades in the power sector in FY2025, driven largely by improvements in the renewable energy segment.
