Electricity Rates Hiked in UP After 5 Years, Bills to Rise Starting This Month

UP Electricity Bills Rise as Fuel Surcharge Returns After 5-Year Gap

Consumers across Uttar Pradesh are facing a quiet yet impactful rise in electricity bills starting April 2025, as the state’s power utility has introduced a fuel surcharge for the first time in nearly five years. The move has taken many households and businesses by surprise, with the increase not accompanied by any formal public announcement.

The Uttar Pradesh Power Corporation Limited (UPPCL) has imposed a 1.24% hike in electricity tariffs through what it calls a "fuel surcharge," a mechanism typically used to offset fluctuations in the cost of power generation. The surcharge now appears in April's billing cycle and is expected to be recalculated on a monthly basis, depending on prevailing fuel prices—much like the pricing model used for petrol and diesel.

Unlike a conventional tariff revision that undergoes public consultation and regulatory scrutiny, this fuel surcharge was introduced without prior notice. Consumers have raised concerns about the lack of transparency, especially as the additional cost will now vary from month to month. The timing of the hike also adds pressure on households already bracing for higher electricity consumption due to rising summer temperatures.

Under the new system, electricity bills will not only depend on usage but also on market-driven fuel rates, making monthly budgeting more difficult for consumers. For example, a customer who paid Rs 1,000 in March for their electricity usage will now have to pay Rs 1,012.40 for the same consumption in April.

The UPPCL has justified the move by citing increased operational and fuel procurement costs, driven largely by the volatility in global energy markets. A senior official from the utility said the fuel surcharge mechanism had been inactive for almost five years due to stable fuel prices and regulatory decisions, but current market conditions have made it necessary to revive the system.

“This is not a permanent tariff hike,” the official said. “It’s a variable charge that reflects changes in fuel prices. If fuel costs decrease, the surcharge will also go down in subsequent months.”

However, consumer rights groups and opposition leaders have criticized the stealthy implementation of the surcharge, arguing that it burdens people during a season when power usage typically peaks. They have also demanded more transparency in how surcharges are calculated and communicated to the public.

With this development, Uttar Pradesh joins a growing list of Indian states that are reintroducing or adjusting fuel-based surcharges to manage rising energy costs. While the percentage may seem small on paper, its cumulative impact over the summer months—especially for middle-class households and small businesses—could be significant.

As the state prepares for even higher electricity demand during the peak summer season, consumers are being urged to monitor their power usage closely and brace for further fluctuations in monthly bills. Meanwhile, calls for clearer communication and regulatory oversight are growing louder, as citizens grapple with the renewed unpredictability in their energy expenses.