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TSECL Introduces Additional Rs. 0.77/Unit Charges in June Power Bills; Consumers Voice Concern Over New Fuel and Sundries Fees

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On: Wednesday, July 2, 2025 7:25 PM
electricity bill increase in Tripura
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Northeast Press | July 2, 2025 | Agartala:

Electricity consumers across Tripura were met with surprise this month after receiving their June 2025 power bills—issued in early July—showing new charges under the “Fuel Charge” and “Sundries” heads. The additional fees, introduced by the Tripura State Electricity Corporation Limited (TSECL), amount to ₹0.7708 per unit of electricity consumed, irrespective of usage category or slab.

This means a household consuming 500 units in a billing cycle now faces an extra charge of ₹385.40, separate from standard energy charges, fixed charges, or meter rent.

What Are the New Charges?
TSECL’s latest bills include two new line items

While “Sundries” has existed in previous bills, it often remained unused or marked with zero amounts. In contrast, “Fuel Charge” appears for the first time as a distinct cost component. Together, they now contribute significantly to the monthly bill, leaving many consumers puzzled about their origin and justification.

These new charges are not covered under standard slab-wise tariff rates and are applied uniformly per unit, raising concerns among both urban and rural users about affordability, especially for high-consumption households and small businesses.

Why Has TSECL Implemented the Charges?
In response to public concern, TSECL issued a clarification statement, explaining that these charges are not arbitrary but are in line with the Fuel and Power Purchase Cost Adjustment (FPPCA) framework, a system approved and mandated by the Tripura Electricity Regulatory Commission (TERC).

TSECL stated that the decision to introduce FPPCA and reflect it in consumer bills stems from the Multi-Year Tariff Order issued by TERC, which took effect from August 1, 2024.

The order includes:

  • True-Up of expenses for the Financial Year 2022–23
  • Aggregate Revenue Requirement (ARR) for FY 2024–25
  • Retail Tariff structure for FY 2024–25

Under Clause 7.9.2 of the TERC Tariff Notification dated August 14, 2024, TSECL is explicitly required to implement the FPPCA mechanism to compensate for fuel and power procurement cost fluctuations.

TERC Directive (Clause 7.9.2):

“The Commission directs TSECL to levy Fuel and Power Purchase Cost Adjustment (FPPCA) as per provisions of TERC (Fuel and Power Purchase Price Adjustment Formula) Regulations, 2011. If FPPCA is not levied as per the Regulations, the Commission will not allow carrying cost in the next tariff order for the period FPPCA was not levied and the same has resulted into revenue gap.”

This clause reinforces the point that non-compliance with the FPPCA provision could lead to financial penalties or disallowances in future tariff calculations for TSECL.

What is FPPCA?
The Fuel and Power Purchase Cost Adjustment (FPPCA) is a mechanism widely used by electricity distribution companies (DISCOMs) across India. It allows utilities to adjust consumer tariffs periodically, usually every quarter, to recover increased fuel costs and power purchase expenses from central or private generating stations.

FPPCA is not part of the regular tariff and is designed to fluctuate based on market conditions, thereby providing utilities a buffer against cost volatility without imposing a blanket tariff hike.

As per the latest update, TSECL has fixed the FPPCA charge at ₹0.7708 per unit for this cycle. However, this rate is subject to revision in the coming quarters, depending on operational cost data submitted to TERC.

Consumer Reactions and Concerns
Despite the official explanation, the sudden inclusion of these charges in electricity bills has drawn criticism from several quarters. Many consumers expressed their dismay over the lack of prior public communication or notification, especially in light of rising living costs.

Residents and business owners have called for greater transparency, asking TSECL to issue advance notices or public advertisements whenever new charges or adjustments are to be made in utility bills.

“I wasn’t aware of any new charges. Suddenly my bill was ₹400 more than last month. This affects our household budget. At least a prior notice would have helped us plan,”

said Sudipta Nandi, a resident of Agartala.

Others echoed the sentiment, emphasizing the need for consumer education campaigns that explain regulatory clauses in layman’s terms.

In its communication, TSECL reiterated that these charges are temporary and regulatory in nature, and are designed to maintain financial health without initiating a full-scale tariff increase. The corporation also emphasized that this method is standard across most Indian states, where utility providers are allowed to recoup real-time costs through FPPCA.

The power utility urged consumers to review the detailed breakup of their bills and reach out to local customer care centers or the TSECL website for further clarification.

The introduction of new FPPCA-linked charges by TSECL marks a significant shift in how electricity billing is structured in Tripura. While the regulatory backing is sound, the public response highlights a need for better awareness and timely communication to avoid confusion and resentment. As electricity consumption continues to rise in the state, the onus will be on TSECL and TERC to ensure that transparency and accountability remain at the forefront of utility governance.


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