Latest news with #FuelandPowerPurchaseAdjustmentSurcharge
Time of India
3 hours ago
- Business
- Time of India
No relief for consumers: Discoms hold back 376cr power bill refund
Bhopal: Over a year after the Madhya Pradesh Electricity Regulatory Commission (MPERC) ordered state distribution companies (discoms) to return Rs 376 crore in excess charges collected from consumers under the Fuel and Power Purchase Adjustment Surcharge (FPPAS), not a single rupee has been refunded. Instead of complying, the state's three discoms, along with MP Power Management Company Ltd (MPPMCL), have challenged the directive and appealed to the Appellate Tribunal for Electricity (APTEL), where proceedings are still ongoing. In its order dated June 28, 2024, the regulator noted that MPPMCL had taken a selective approach to the application of FPPAS for FY 2023-24 — charging consumers when FPPAS was positive, but failing to credit them when it was negative. The commission found that the discoms had over-recovered Rs 376.28 crore through FPPAS in FY 2023-24, directing them to refund this amount to consumers via equal monthly instalments from July 2024 to March 2025. But rather than following the order, the companies appealed to APTEL and simultaneously filed a review petition with MPERC, seeking reconsideration of the June 28 order and asking for a waiver on the Rs 11.69 crore in carrying costs imposed for the additional recovery from consumers. MPERC reviewed these claims in May 2025 and upheld its earlier decision, rejecting the review petition. The commission pointed out that the audited accounts for FY 2023-24, considered in the true-up exercise of March 2025, already reflected all costs and revenue, and rejected the request to alter the FPPAS formula as it aligns with the Centre's 2022 Electricity (Amendment) Rules. Discoms continue to impose FPPAS with each billing cycle. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
2 days ago
- Business
- Time of India
SC orders recovery of 50k cr deferred power tariffs in Raj
Jaipur: Discoms in Rajasthan have been deferring power tariff hikes as they became a political tool under successive govts. But these are not subsidies and need to be collected from the consumers. Currently, the discoms sit over Rs 50,000 crore of such deferred tariffs. Earlier this month, the Supreme Court directed all the electricity regulators and discoms in the country to find ways to realise these revenues over a period of seven years starting from 2024 and it can be done by hiking power tariffs. If the state govt does not intervene and pay the amount, the discoms will have to hike tariffs to recover the amount. According to estimates, the discoms in the state need to raise electricity tariffs by at least 90 paise per unit from all consumers to recover the amount in seven years. Additionally, the discoms pay around Rs 5,000 crore interest on the Rs 50,000 crore liability. If the future interest amount is added, the additional tariffs can cross Re 1 a unit. The problem of the deferred revenues, called regulatory assets, is particularly severe in Rajasthan as its discoms account for over 25% of country's total regulatory assets. In fact, the Rajasthan Electricity Regulatory Commission, incorporated provisions on regulatory assets in its 2025 tariff regulations that are in line with the Supreme Court's decision. Manish Kumar Mahto of Centre for Energy, Environment and People, said, "Despite these stringent measures, the discoms did not outline any liquidation plans in their annual tariff petitions, as required under the regulations. This omission underscores gaps in the regulatory framework and RERC's limited ability to enforce compliance." Mahto said the apex court also capped annual revenue shortfall of discoms at 3% of the approved revenue requirement and limited regulatory asset creation to exceptional circumstances only. Mahto said that on top of concerns about high surcharges themselves, there are questions about how they will fit within tariff structures. "In their tariff petitions for FY26, the discoms have proposed that the combined Regulatory Asset Surcharge and Fuel and Power Purchase Adjustment Surcharge (FPPAS) be capped at Re 1 per unit. With base fuel surcharges for this year being charged at 28 paise per unit and actual fuel surcharges reaching as high as 56 paise per unit in last two years, there is little scope to recover even the initial 90 paise per unit regulatory asset surcharge required for regulatory asset liquidation," he added. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
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:
