Latest news with #FPPAS
Time of India
29-05-2025
- Business
- 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.
Time of India
29-04-2025
- Business
- Time of India
Power bills up 4.67% this month as discoms apply fuel surcharge
Bhopal: Power bills will rise by 4.67% this month, with consumers set to pay more from April 24 to May 23 due to a fuel and power purchase adjustment surcharge (FPPAS) of 3.92%. In the same period last month, the FPPAS stood at -0.75%. Since this month's FPPAS is 3.92%, effectively this month's bills will be 4.67% dearer compared to the same period in the previous month. The FPPAS is levied over and above the standard tariff determined annually by the state electricity regulator. The levying of FPPAS month on month is being done under an amendment of MPERC that allows discoms to increase the tariff month on month since the last fiscal. Sources said the FPPAS for April 24 and May 23 is based on the difference between the actual power purchase cost and the estimated power purchase cost for the month of Febr of this financial year. As per an amendment to MPERC Regulations 2021 last fiscal, the regulator allowed for FPPAS to be "calculated and billed by the distribution licensee to consumers, automatically, without going through the regulatory approval process, on a monthly basis". 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 these, 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 from April 1, however, the regulator has allowed a hike of 3.46% for this year. This FPPAS will be above this 3.46% hike. Bhopal: Power bills will rise by 4.67% this month, with consumers set to pay more from April 24 to May 23 due to a fuel and power purchase adjustment surcharge (FPPAS) of 3.92%. In the same period last month, the FPPAS stood at -0.75%. Since this month's FPPAS is 3.92%, effectively this month's bills will be 4.67% dearer compared to the same period in the previous month. The FPPAS is levied over and above the standard tariff determined annually by the state electricity regulator. The levying of FPPAS month on month is being done under an amendment of MPERC that allows discoms to increase the tariff month on month since the last fiscal. Sources said the FPPAS for April 24 and May 23 is based on the difference between the actual power purchase cost and the estimated power purchase cost for the month of Febr of this financial year. As per an amendment to MPERC Regulations 2021 last fiscal, the regulator allowed for FPPAS to be "calculated and billed by the distribution licensee to consumers, automatically, without going through the regulatory approval process, on a monthly basis". 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 these, 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 from April 1, however, the regulator has allowed a hike of 3.46% for this year. This FPPAS will be above this 3.46% hike.
News18
22-04-2025
- Business
- News18
Electricity Bills To Go Up In UP From This Month, Rates Hiked After 5 Years
Electricity bills in Uttar Pradesh will rise due to a new 1.24% "fuel surcharge", a mechanism that had remained dormant for nearly five years. In a move that has taken consumers by surprise, electricity bills in Uttar Pradesh have quietly climbed higher, with a newly imposed surcharge now appearing in the bills for April 2025. The Uttar Pradesh Power Corporation Limited (UPPCL) has implemented a 1.24% increase in power tariffs, disguised as a 'fuel surcharge", a mechanism that had remained dormant for nearly five years. Unlike a conventional tariff hike that requires public notification, this additional charge was levied quietly, causing concern among households and commercial consumers alike. The surcharge, tied to fluctuating fuel costs, will now be recalibrated monthly, mirroring the pricing model used for petrol and diesel. This means electricity bills will now rise or fall based on power consumption and market fuel prices, adding an element of unpredictability to monthly budgeting. But with rising temperatures already pushing up electricity usage, the impact for most consumers is expected to be an immediate rise in costs rather than any relief. A consumer who paid Rs 1,000 in March, for instance, will now pay Rs 1,012.40 for the same usage in April. The Uttar Pradesh Electricity Regulatory Commission, under the Multi Year Tariff Regulation 2025, has empowered distribution companies to adjust tariffs monthly through what is known as the Fuel and Power Purchase Adjustment Surcharge (FPPAS). This is the first time such a mechanism is being implemented in the state. Calling the surcharge unjustified, the Uttar Pradesh State Electricity Consumer Council has vowed to oppose it. UPPCL still owes Rs 33,122 crore to consumers, and instead of settling this, they've decided to hike the bills, said Awadhesh Verma, president of the council. This backdoor increase is unacceptable, and we will protest against it, he added. First Published:
