- Uttar Pradesh Electricity Regulatory Commission suspended UPPCL's 10% surcharge on June bills
- Electricity Consumer Council challenged the surcharge, citing unfair financial burden on consumers
- UPPCL introduced the fee to recover increased power procurement and transmission costs from March
UPPCL's proposed 10% surcharge on June electricity bills has been temporarily stopped by the Uttar Pradesh Electricity Regulatory Commission.
The Electricity Consumer Council contested the fee, claiming it would unjustly burden consumers, which prompted the action. Until the regulator makes a final determination, the surcharge will be suspended.
As reported by India Today, the Uttar Pradesh Electricity Regulatory Commission has postponed the Uttar Pradesh Power Corp's decision to impose an additional surcharge on electricity bills for June, which is a major relief for electricity consumers throughout Uttar Pradesh.
The proposed levy, which would have been implemented under the fuel adjustment charge system, would have raised power prices by about 10%, according to the research. The Electricity Consumer Council contested the ruling before the regulator, claiming that the extra was against the law and would put a further financial strain on the state's millions of users.
In response to the petition, the commission asked UPPCL for a response and ordered that the proposed extra be excluded from June electricity bills until a decision was made.
On May 29, UPPCL announced the new fee in an order, noting that it was meant to recoup the utility's increased power procurement and transmission expenses. According to India Today, the company claimed that the change was compliant with current rules controlling fuel and power purchase cost recovery.
As a fuel adjustment charge related to power used in March, the utility had intended to recoup the total through June electricity bills.
While the disagreement is being investigated, home, commercial, and industrial consumers throughout the state are temporarily relieved by the regulatory commission's stay. Following UPPCL's submission of its response to the commission, the issue is anticipated to be pursued further, according to India Today.
In order to recoup Rs 1,610.57 crore in higher fuel expenses starting in March, UPPCL first proposed a 10% Fuel and Power Purchase Adjustment Surcharge (FPPAS).
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