Monsoon brings relief as fuel surcharge on power bills drops to 1.11%

Bhopal: With monsoon rains bringing relief from the scorching heat, electricity consumers in Madhya Pradesh have another reason to cheer.Monthly power bills will ease slightly as the Fuel and Power Purchase Adjustment Surcharge (FPPAS) has been cut to 1.11% for bills issued between June 24 and July 23.

This is a sharp drop from the 5.36% surcharge levied in the previous billing cycle.The lower surcharge comes even as the revised electricity tariff for 2026-27, with a 4.8% hike, remains in force since April 1. However, the steep fall in the monthly fuel surcharge means the overall burden on consumers this cycle is much lower than during peak summer.For a consumer with a Rs 1,000 monthly bill, the 1.11% FPPAS adds about Rs 11.

Under the previous 5.36% rate, it was around Rs 53. Combined with lower power use due to cooler weather, the relief is expected to be noticeable.Officials said the FPPAS is calculated on the gap between actual and estimated power purchase costs for a given month. In this case, the calculation is based on February. Under amended MPERC regulations, discoms can levy the charge monthly without prior regulatory approval.

The power tariff itself is set annually by the regulator. Any variation in fuel costs is now passed on to consumers in the next billing cycle, instead of through annual true-up petitions.For 2026-27, the regulator approved a 4.8% tariff hike against the 10.19% increase sought by discoms. While the revised tariff continues, the much lower FPPAS has softened the impact on bills this month.With monsoon reducing both temperature and demand, consumers are expected to benefit from lower consumption and a lower fuel surcharge — a welcome break after steep summer bills.