FPPCA is turning out a boon for UPCL consumers

PrashantNews

The Uttarakhand Power Corporation Ltd (UPCL) is paying dividends to its consumers in terms of discount in electricity bills through the Fuel and Power Purchase Cost Adjustment (FPPCA) method, a top company official said on Tuesday.

As per tariff regulations of the Uttarakhand Electricity Regulatory Commission (UERC), if the monthly power purchase cost of UPCL is more than the approved power purchase cost, then it is charged in the Fuel and Power Purchase Cost Adjustment (FPPCA) item in the electricity bills of consumers, on the contrary, if the monthly power purchase cost is less than the approved power purchase cost, then it is refunded in the electricity bills of consumers under the FPPCA item.

The UERC had approved the average power purchase cost of Rs 5.03 per unit for the year 2024-25 by tariff order dated 28-03-2024, against which the average power purchase cost of UPCL during the period from April, 2024 to October, 2024 was Rs 4.69 per unit. Thus, during the period April, 2024 to October, 2024, UPCL’s power purchase cost decreased by Rs 0.34 per unit (6.77 per cent) as compared to the approved power purchase cost, due to which there was huge saving in power purchase cost.

The amount of such saving in power purchase cost is being given by UPCL as discount in the electricity bills of consumers on monthly basis under FPPCA item.

The UPCL has issued orders to provide discount of Rs 103.52 crore (Rs 0.85 per unit) in consumer bills in the month of December, 2024 also. Category wise FPPCA in electricity bills as compared to electricity consumption of the month of December, 2024. The discounts available under this item are as follows:

Consumer category Discount per unit

Domestic                                      25 paise to 68 paise

Non-domestic                             98 paise

Government Public Utility       92 paise

Private Tubewell                        30 paise

Agricultural activities                42 paise

LT Industry                                 91 paise

HT Industry                                91 paise

Mixed load                                   85 paise

Railway traction                         85 paise

EV charging station                   81 paise

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