Lucknow: The Uttar Pradesh Electricity Regulatory Commission (UPERC) on Tuesday directed Uttar Pradesh Power Corporation Ltd (UPPCL) to stop including prior period power buy liabilities in monthly Fuel and Power Buy Adjustment Surcharge (FPPAS) calculations, holding that such costs cannot be recovered through the delegated FPPAS mechanism even if they may be otherwise recoverable.The order followed UPPCL’s June 19 submission defending the methodology used since the FPPAS regime was operationalised in April 2025. UPPCL managing director Nitish Kumar said discoms implemented FPPAS from April 2025 using January 2025 power buy cost data and a method “consistently followed across all months”. UPPCL said for 14 months discoms computed and levied FPPAS similarly and submitted detailed calculations to the regulator.UPPCL argued supplementary bills and old dues became payable and were verified during the billing month, making them part of actual power buy cost. It said excluding them would push recovery to annual true-up, adding carrying costs, and cited practices in Gujarat and Delhi.UPERC said Regulation 16.1(3) permits FPPAS only for cost variations linked to power procured in the relevant month, not past liabilities. It directed that from the next cycle, only current-month fuel, power buy and transmission costs be used, with prior period claims routed through annual true-up. Consumer body chairman Avadhesh Kumar Verma sought refunds, citing a June 10% surcharge projected to raise Rs 1,610.57 crore.
