Assam power bills may rise from November as AERC allows recovery of Rs 155.59 crore surcharge

Electricity consumers in Assam may see an increase in their monthly power bills from November after the Assam Electricity Regulatory Commission (AERC) allowed the Assam Power Distribution Company Ltd (APDCL) to recover around ₹155.59 crore in accumulated Fuel and Power Purchase Price Adjustment Surcharge (FPPPAS).

The accumulated surcharge relates to the period from April to August 2026. The commission has permitted APDCL to recover the amount in a staggered manner between November 2026 and March 2027.

In its order, AERC relaxed Regulations 4.2, 4.3, 4.6 and 5.1 of the AERC (Fuel and Power Purchase Price Adjustment) Regulations, 2024, to facilitate the recovery.

APDCL had approached the commission seeking relaxation of the existing provisions, citing delays in imposing the surcharge due to flood-related disruptions and force majeure circumstances. The company said variations in power purchase and transmission costs had led to the accumulation of approximately ₹156 crore over the five-month period, excluding supplementary bills.

APDCL had proposed recovering the amount through a five-month schedule, with a monthly FPPPAS rate of 3.81%. Its proposed month-wise recovery was ₹40.07 crore in November, ₹30.95 crore in December, ₹28.97 crore in January, ₹29.36 crore in February and ₹26.23 crore in March.

Under the existing regulations, the surcharge for a particular month is ordinarily levied in the second succeeding month. However, the accumulated amount could not be recovered within the prescribed billing cycles. AERC also observed that regular monthly FPPPAS dues from September 2026 onwards would add to the recovery burden during the remaining months of the financial year.

APDCL had also proposed a reduced surcharge of ₹0.05 per unit for consumers under the Jeevan Dhara category and Domestic-A households consuming up to 120 units a month, citing concerns over the financial burden on economically vulnerable households. Under this proposal, ₹48.73 crore would remain unrecovered and would be considered during the subsequent true-up proceedings, subject to the commission's approval.

However, AERC did not approve APDCL's specific month-wise recovery schedule or differential rates. Instead, it granted the company flexibility to decide how the accumulated surcharge would be levied between November and March.

The commission directed APDCL to consider the impact on consumers while determining the monthly levy and ensure that the accumulated surcharge is clearly distinguished from the regular monthly FPPPAS becoming payable during the same period.

APDCL has also been instructed to maintain month-wise records of the surcharge levied and recovered, along with supporting calculations and billing details, and submit them to the commission for scrutiny.

AERC clarified that any adjustment during the true-up process would be allowed only to the extent admissible under the applicable regulations or as determined by the commission.

The commission further stated that the relaxation was granted only in view of the special circumstances of the present case and would not serve as a precedent for future cases. It emphasised that timely compliance with regulatory provisions must remain the norm to prevent the accumulation of unrecovered amounts and avoid sudden or disproportionate tariff impacts on consumers.