Good News for Consumers in UP: Electricity Rates will no longer rise by 10%; Commission declares hike illegal

June 2, 2026

The Uttar Pradesh Electricity Regulatory Commission has declared illegal the 10 percent fuel surcharge imposed on electricity bills by the Power Corporation. Furthermore, it has directed the Corporation to submit a response regarding the entire matter within seven days.

The Commission will pronounce its final verdict following the receipt of this response. Consequently, it is now anticipated that the collection of the 10 percent levy in the form of a fuel surcharge will no longer be permissible.

The Power Corporation had issued an order to collect a 10 percent levy as a fuel surcharge for the month of March. As a result, it was indicated that electricity bills issued in June would be 10 percent higher than usual.

On Monday, Awadhesh Kumar Verma, President of the State Electricity Consumer Council, met with the Chairman of the Electricity Regulatory Commission, Arvind Kumar, and member Sanjay Kumar Singh. While filing a proposal of public interest, he pointed out that, under the guise of a fuel surcharge, the Corporation had included not only the actual power purchase costs for March 2026 but also old outstanding claims and prior liabilities amounting to approximately ₹1,400 crore.

This action contravenes the Commission’s regulations. Upon hearing the matter, the Electricity Regulatory Commission issued a notice to the Power Corporation. The Commission stated that incorporating all of the Corporation’s liabilities into the calculation places an undue financial burden on consumers. Including arrears and liabilities from previous periods in the current Fuel and Power Purchase Adjustment Surcharge (FPPAS) calculation is inconsistent with the provisions of Regulation 16.1. Consequently, this surcharge cannot be approved.

The Commission has ordered the Power Corporation to provide a detailed explanation within seven days. Additionally, it has directed the Corporation to submit particulars regarding both current and past power purchase costs, as well as transmission charges.