Lucknow: Electricity consumers across UP will receive another reduction in their power bills, with the UP Power Corporation Ltd (UPPCL) announcing a 2.92% negative Fuel and Power Purchase Adjustment Surcharge (FPPAS) for Aug. This marks the second consecutive month of relief and the second largest monthly benefit extended to consumers since the monthly FPPAS mechanism came into effect.The order, issued on Monday, directs all state discoms to pass on the benefit to consumers across all categories through Aug electricity bills. The adjustment has been made in accordance with the UP Electricity Regulatory Commission (UPERC) regulations and is based on the actual power purchase and transmission costs for May 2026.According to UPPCL’s regulatory affairs unit, the actual average power purchase cost during May stood at Rs 4.73 per unit against the approved cost of Rs 4.94 per unit. This lower procurement cost resulted in a negative FPPAS of 2.92%, translating into a direct benefit of Rs 221.14 crore for consumers across the state.The latest reduction follows a record 4.43% negative FPPAS in Jul, when consumers received relief worth Rs 358.31 crore, the highest monthly benefit under the mechanism.Welcoming the decision, the UP Rajya Vidyut Upbhokta Parishad (UPRVUP) termed it the second biggest monthly relief since FPPAS began being implemented on a monthly basis.UPRVUP chairman Avadhesh Kumar Verma said that UPERC’s Jun 23 order had clarified that FPPAS calculations must be based solely on the actual power purchase cost and transmission charges of the relevant month, without including liabilities or adjustments from previous periods.He said strict adherence to these norms ensures that whenever procurement costs remain below approved levels, the resulting savings are passed directly to consumers through lower electricity bills.
