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UP residents will pay 10% more on electricity bills from June as UPPCL imposes a fuel surcharge to recover higher power purchase and transmission costs linked to rising energy prices.
Uttar Pradesh residents will be required to pay 10 per cent extra on their electricity usage starting June. This comes amid fuel surcharges due to the global energy crisis triggered by the Iran war. The Uttar Pradesh Power Corporation Limited (UPPCL) on Saturday (May 30) directed distribution companies to implement the hike, citing a “fuel surcharge” to recover higher power purchase and transmission costs.
The surcharge has been introduced under the provisions of the Uttar Pradesh Electricity Regulatory Commission’s (UPERC) Multi-Year Tariff (MYT) Regulations, 2025. According to the regulatory framework, power distribution companies are allowed to recover additional expenses arising from fluctuations in fuel prices and electricity procurement costs through a separate adjustment mechanism.
In an official communication, Pankaj Saxena, the Chief Engineer of the Regulatory Affairs Unit (RAU), explained that the surcharge relates to extra power purchase and transmission expenses incurred during March 2026. As stipulated by the regulations, such costs are recovered from consumers after a three-month gap, making June the applicable month for collection.
“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,” Saxena said.
“For March 2026, the surcharge has been calculated at 10% under Clause 16(4) of the MYT Regulations, 2025. This 10% FPPAS (Fuel and Power Purchase Adjustment Surcharge) will therefore be added to electricity bills issued in June 2026 and will apply across all categories of consumers,” he stated.
He further added, “The directive instructs distribution companies to implement this surcharge uniformly for all consumers as per the regulatory framework. A detailed calculation sheet has also been provided for reference and is to be uploaded on the official website for transparency.”
The letter reads “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 added, “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 move comes at a time when consumers are already facing increasing costs due to rising fuel prices. Petrol and diesel rates have witnessed multiple hikes in recent weeks amid fluctuations in global crude oil markets and geopolitical tensions in West Asia. In Delhi, petrol prices have crossed Rs 100 per litre, while diesel rates have also risen significantly.