Yogi government gives relief to 3.7 crore electricity consumers of UP, electricity bills will come down in July

Lucknow, 30 June. Yogi Adityanath’s government has provided relief to about 3.7 crore electricity consumers of UP who have been facing the brunt of fuel surcharge since April last year. In this sequence, the fuel surcharge was recalculated on the instructions of Uttar Pradesh Electricity Regulatory Commission (UPERC), after which it has been reduced by 4.43%. Its direct benefit will be visible in the electricity bills of July. In other words, after the high electricity bills in June, there will be relief in July due to 4.43% reduction in fuel surcharge.

This is why electricity bills increased in June

A 10% fuel surcharge was added to the electricity bills issued in June. This led to a huge increase in the monthly bills of electricity consumers. After the bill increase, complaints came from across the state and questions were raised on the calculation of surcharge. During investigation, Uttar Pradesh Power Corporation Limited (UPPCL) admitted that while calculating fuel surcharge, old dues payments were also added to the actual power purchase cost for the month of March. Due to this the surcharge became more than necessary.

Instructions for recalculation of fuel surcharge

After the matter came to light, UPERC sought a reply from the power corporation and clarified that the fuel surcharge should be calculated only on the basis of actual expenditure on power purchase in the concerned month. Including old dues in this is not as per the rules. The surcharge for July was recalculated following the Commission’s direction, with rates reduced by 4.43%. This will provide relief to all the electricity consumers of the state.

358.31 Expected profit of Rs crore

As per estimates, the revised surcharge is expected to provide a benefit of approximately Rs 358.31 crore to consumers across Uttar Pradesh. The Consumer Council welcomed the decision. State Electricity Consumer Council Chairman Awadhesh Kumar Verma said the actual cost of purchasing electricity in April was lower than initially estimated, which made it possible to reduce fuel surcharge in July.

What is fuel surcharge??

Fuel surcharge is an extra charge added to the electricity bill based on fluctuations in the cost of power generation and purchase of power from external sources. If the cost of purchasing electricity increases, the surcharge increases, whereas if the cost decreases, the surcharge also decreases and consumers’ bills come down.