Power Firms Seek Relaxation Of HERC Fuel Surcharge Rules

16 Apr 2026 CW Team

Under the existing framework, additional costs arising from fuel and power purchase are recovered from consumers each month through the Fuel and Power Purchase Adjustment Surcharge (FPPAS). The discoms have proposed that the monthly recovery be deferred and that the amount be collected in subsequent financial years instead, at a uniform rate of 47 paise per unit across all consumer categories, in order to manage immediate cash flow pressures.

The petitioners have also sought permission to include a carrying cost on deferred amounts so that dues can be recovered in full over the proposed period. The distribution companies argue that a deferred, uniform charge would smooth the burden on consumers and help stabilise the utilities' revenue streams while permitting predictable recovery over time.

HERC has not taken an immediate decision and is following a public consultation process to seek stakeholder input before ruling on the requests. The commission has issued a public notice inviting objections and suggestions from individuals and organisations, which may be submitted by May one, and has scheduled a public hearing on May 14 at 11:30 am in its courtroom at Panchkula to allow stakeholders to present their views.

The commission will take a final decision after considering public feedback, with the stated objective of balancing the financial health of power utilities and consumer interests. Officials indicate that the consultation process is intended to ensure transparency and to weigh the wider implications of changing the timing and structure of fuel surcharge recovery.

Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) have approached the Haryana Electricity Regulatory Commission (HERC) seeking relaxation of rules that govern recovery of fuel and power purchase costs. The distribution companies have filed petitions proposing amendments to Regulation sixty eight of the Multi-Year Tariff (MYT) Regulations, 2024 for financial year 2025-26, and have asked the regulator to consider alternative recovery mechanisms to the current monthly arrangement. Under the existing framework, additional costs arising from fuel and power purchase are recovered from consumers each month through the Fuel and Power Purchase Adjustment Surcharge (FPPAS). The discoms have proposed that the monthly recovery be deferred and that the amount be collected in subsequent financial years instead, at a uniform rate of 47 paise per unit across all consumer categories, in order to manage immediate cash flow pressures. The petitioners have also sought permission to include a carrying cost on deferred amounts so that dues can be recovered in full over the proposed period. The distribution companies argue that a deferred, uniform charge would smooth the burden on consumers and help stabilise the utilities' revenue streams while permitting predictable recovery over time. HERC has not taken an immediate decision and is following a public consultation process to seek stakeholder input before ruling on the requests. The commission has issued a public notice inviting objections and suggestions from individuals and organisations, which may be submitted by May one, and has scheduled a public hearing on May 14 at 11:30 am in its courtroom at Panchkula to allow stakeholders to present their views. The commission will take a final decision after considering public feedback, with the stated objective of balancing the financial health of power utilities and consumer interests. Officials indicate that the consultation process is intended to ensure transparency and to weigh the wider implications of changing the timing and structure of fuel surcharge recovery.

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