The decision to impose a 10 percent fuel surcharge on electricity bills in Uttar Pradesh for June has triggered a dispute, with the Electricity Regulatory Commission seeking clarification from Uttar Pradesh Power Corporation Limited (UPPCL). The commission has raised preliminary questions regarding the surcharge and sought a detailed explanation while the additional charge continues to be collected from consumers.
The decision to recover a 10 percent additional fuel surcharge through June electricity bills has affected approximately 3.73 crore domestic, commercial, and industrial consumers across Uttar Pradesh. UPPCL issued the order to recover the cost of electricity procurement and fuel expenditure for March through the surcharge.
According to the corporation, approximately Rs 1,610 crore is expected to be collected through the surcharge. Following the issuance of the order, consumer organisations opposed the decision, and the matter reached the Electricity Regulatory Commission. During its preliminary review, the commission raised several questions regarding the order and directed the corporation to submit a detailed response within seven days.
The Electricity Consumers Council, in a petition filed before the commission, alleged that the fuel surcharge calculation was not carried out in accordance with regulations. The council stated that the commission-approved electricity procurement rate is Rs 4.94 per unit, while the corporation presented the rate as Rs 5.86 per unit.
According to the council, outstanding dues and previous liabilities were added along with electricity procurement costs, increasing the financial burden on consumers. The council claimed that if the calculation is made on the basis of actual cost, consumer electricity bills for June could decrease by around 2 percent instead of increasing.
Consumer organisations said imposing such an additional burden on people already facing inflation is inappropriate.
Taking the matter seriously, the Electricity Regulatory Commission asked UPPCL to clarify the legal basis for including outstanding dues, NTPC payments, and other liabilities in the fuel surcharge calculation. The commission also sought detailed information on electricity procurement costs, transmission charges, and other expenses.
In a preliminary observation, the commission stated that any decision imposing an additional financial burden on consumers should be implemented with complete transparency and in accordance with regulations. The commission said protecting consumer interests should remain the highest priority.
The commission has not imposed any formal stay on the fuel surcharge recovery. Consumers currently paying electricity bills continue to be charged the additional 10 percent surcharge.
However, if the commission’s hearing results in a decision in favour of consumers and the surcharge is deemed unjustified, the additional amount already collected may be adjusted in future electricity bills. Attention is now focused on the commission’s upcoming hearing and UPPCL’s response.
A dispute regarding a 10 percent fuel surcharge imposed in February also remains pending. The June surcharge issue is being closely watched by electricity consumers in the state, with the commission’s final decision expected to directly affect consumers’ expenses.
