Assam Households are paying higher electricity bills despite no increase in the power tarrifs: Here’s Why

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• Sep 18, 2022 | Kabir Chakraborty

"It is true what CM Sarma claimed. However, the added FPPCA charge has increased the costs, "an APDCL official mentioned.   color:#252525">

color:#252525">Digital Desk: Assam has experienced widespread public uproar
over excessive electricity costs for almost a week. The hike took place even
though Assam Power Distribution Company Limited (APDCL) has not recently
increased the power tariff. Assam Chief Minister, Himanta Biswa Sarma, stated
on September 16 that there had not been a rise in the power prices and
attributed the higher bills to malfunctioning meters. Sarma stated to the press
that he has given the APDCL immediate instructions to rectify the malfunctioning
smart meters and answer public complaints.

color:#252525">Part of the Chief Minister's assertion is true. Despite rumours
that APDCL had increased the prices since August, there has not been a rise in
the cost of electricity. There might also be some inaccurate meters. But
because of the modifications to the Fuel and Power Purchase Cost Adjustment
(FPPCA), which increased by 30 paise, electricity costs have gone up. "It
is true what CM Sarma claimed. However, the added FPPCA charge has increased
the costs, "an APDCL official mentioned.  

color:#252525">The FPPCA is the amount that power companies apply to bills
based on the varying prices of fuel and coal. The price of coal and fuel
changes every month based on demand and supply. The corporations that produce
power transfer this shift in cost to the firms that distribute it, who then
transfer it to the end users.

color:#252525">The FPPCA amount is individually stated as a component when
determining the overall amount billed in the power bills. This FPPCA fee is
charged for each unit of power used. Therefore, it varies depending on how much
electricity the client uses each month. This portion of the electricity bill is
expected to decrease with any decrease in monthly electricity usage.
Additionally, increased usage raises the FPPCA portion of the bill. The FPPCA
price decreased by five paise per unit over the last three months, and this was
reflected in the power bills. The fee has now been raised by 30 paise for the
next three months, resulting in higher electricity costs.

color:#252525">In the previous few months, customers in Guwahati City consumed
a monthly average of 100 million units. However, this has already grown to 125
million units. This higher consumption has resulted in higher power bills
because FPPCA is applied to every unit consumed. An APDCL employee said,
"That's why we've been asking consumers to cut back on usage.