Bhopal (Madhya Pradesh): Madhya Pradesh electricity consumers will see a rise in their monthly power bills as the fuel and power purchase adjustment surcharge (FPPAS) has been increased from 4.59% to 5.063%. The revised FPPAS rate, applicable on bills issued between September 24 and October 23, will increase the payable amount depending on electricity consumption and energy charge slabs.
The revised surcharge rate represents a 0.473 percentage point increase. However, the additional burden will vary for consumers as FPPAS is calculated only on energy charges and not on the total electricity bill.
For a consumer using 300 units, with an energy charge of ₹1,576.50, the FPPAS at 5.063% will amount to around ₹79.82. For 500 units with an energy charge of ₹3,024.50, the surcharge will be approximately ₹153.23.
Higher Consumption, Higher Impact
The increase from the earlier 4.59% FPPAS rate will add around ₹7.46 to the bill of consumers using 300 units and ₹14.31 for those consuming 500 units.
For lower consumption categories, the additional impact will be around ₹2.46 for 100 units and ₹4.12 for 200 units.
Agrawal said attributing an additional payment of ₹120 solely to the FPPAS surcharge increase would not be accurate, as electricity bills also include fixed charges, meter charges, subsidies and other components.
The impact of the FPPAS surcharge varies as energy charges are calculated according to different tariff slabs. Under the existing electricity tariff structure, consumers pay ₹4.71 per unit for the first 50 units, ₹5.67 per unit for 51-150 units, ₹7.05 per unit for 151-300 units and ₹7.24 per unit above 300 units.
FPPAS Surcharge Linked To Power Purchase Costs
The fuel and power purchase adjustment surcharge is imposed to recover fluctuations in electricity generation and power purchase costs. Changes in coal prices, fuel expenses and power procurement rates lead to adjustments through the FPPAS mechanism.
Officials said the increase is not a permanent electricity tariff hike but a monthly adjustment mechanism. The FPPAS surcharge may reduce if power purchase costs decline.
Agrawal added that the FPPAS amount will be displayed separately in electricity bills, allowing consumers to understand the additional cost. A subsequent true-up process may also be carried out to reconcile actual expenses.
