Relief to 3.7 crore electricity consumers of UP, electricity bill will reduce in July, know the reason

There is news of relief for about 3.7 crore electricity consumers of Uttar Pradesh. The electricity bill in the month of July will be less than the previous month. The reason for this is the 4.43 percent reduction in fuel surcharge. While consumers had to face increased electricity bills in June, now they are going to get the direct benefit of this reduction in the July bills. It is estimated that this decision will provide a total relief of more than Rs 358 crore to the consumers of the state.

What is fuel surcharge?

The cost of producing electricity and purchasing electricity from outside varies every month. To compensate for this additional cost, power companies impose fuel surcharge. When electricity production or purchase becomes expensive, this fee is increased and the electricity bill of consumers also increases. At the same time, if the cost is reduced, this fee is reduced, which provides relief in the bill.

Why did electricity bills increase in June?

In the month of June, 10 percent fuel surcharge was imposed on electricity consumers. Due to this, electricity bills suddenly increased across the state and consumers also protested against it. Later investigation into the matter revealed that while calculating the fuel surcharge, the Power Corporation had added the old dues payment along with the actual power purchase cost for the month of March. Because of this, the surcharge exceeded expectations and placed additional financial burden on consumers.

Relief from the strictness of the Regulatory Commission

After the matter came to light, the Uttar Pradesh Electricity Regulatory Commission sought clarification from the Power Corporation. The Commission clarified that the fuel surcharge will be calculated only on the basis of actual power purchase cost of the concerned month. Including old outstanding payments in this is not as per the rules.

Following the instructions of the Commission, recalculation was done for July, in which the fuel surcharge duty rates came out negative. Electricity consumers will directly benefit from this and will see a reduction in their July bills.

Relief of more than Rs 358 crore will be available

According to the new calculations, consumers of the state are expected to get relief of approximately Rs 358.31 crore. This will have a positive impact on the monthly bills of domestic, commercial and all other categories of electricity consumers.

What did the Consumer Council say?

State Electricity Consumer Council Chairman Awadhesh Kumar Verma called it a big victory in the legal battle of the consumers. He says that the actual cost of purchasing electricity in the month of April was less than estimated, so it is natural for consumers to get its benefit.

He also demanded that if excessive fuel surcharge has been collected from consumers in the month of June, then it should be reviewed and the excess amount should be returned. He believes that the calculation of electricity bill should be completely transparent so that there is no unnecessary financial burden on the consumers.

What is the message for consumers?

Consumers will get the benefit of reduction in fuel surcharge in the electricity bill coming in July. However, the bill amount will also depend on the electricity consumption. Experts say that consumers can further reduce their monthly bills by saving electricity and using energy efficient appliances. At the same time, in future also the rates of fuel surcharge will continue to be decided on the basis of power purchase cost.

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