Pankaj Saxena, Chief Engineer of the Regulatory Affairs Unit (RAU), explained in a letter that the Uttar Pradesh Electricity Regulatory Commission (UPERC) issued new regulations on March 26, 2025, governing electricity distribution under the Multi-Year Tariff (MYT) framework.

Under these rules, a Fuel and Power Purchase Adjustment Surcharge (FPPAS) is applied to consumers to compensate distribution companies for fluctuations in fuel and power purchase costs. Saxena stated, “As per the regulation, any extra power purchase and transmission costs incurred in a given month are recovered after a delay of three months. This means the additional cost incurred in March 2026 will be recovered from consumers in June 2026.”

He added, “For March 2026, the surcharge has been calculated at 10% under Clause 16(4) of the MYT Regulations, 2025. This 10% FPPAS will therefore be added to electricity bills issued in June 2026 and will apply across all categories of consumers.”

The directive mandates distribution companies to apply the surcharge uniformly for all consumers in accordance with the regulatory framework. A detailed calculation sheet has been provided for reference and will be uploaded on the official website to ensure transparency, Saxena added.

The letter elaborates, “Hon’ble Commission vide notification dated 26.03.2025 has issued Uttar Pradesh Electricity Regulatory Commission (MYT for Distribution) Regulations, 2025. As per the regulation, Fuel and Power Purchase Adjustment Surcharge (FPPAS) has to be charged in the nth month for incremental Power Purchase and Transmission Charges paid in the n-3rd month.”

It continues, “Fuel and Power Purchase Adjustment Surcharge (FPPAS) calculated for the month of March, 2026, as per regulation is to be charged in the month of June, 2026.”

The letter concludes, “According to clause 16(4) of MYT Regulation, 2025 FPPAS chargeable is 10% for the month of March, 2026, to be charged in the month of June, 2026. I have been directed to request you to implement the same for all categories of consumers as per the provisions of the regulation. To comply with the provision of the regulation, a detailed calculation sheet is attached for your reference and uploading the same on the website.”

The fuel price increase comes amid global crude market volatility and geopolitical tensions in West Asia. Petrol and diesel prices were raised for the fourth time within less than two weeks. Following the most recent revision on Monday, petrol prices in Delhi rose by Rs 2.61 to Rs 102.12 per litre, crossing the Rs 100 mark, while diesel prices increased by Rs 2.71 to Rs 95.20 per litre. Similar hikes were reported in major metropolitan cities such as Kolkata, Mumbai, and Chennai, adding financial pressure on consumers and transport operators.