TSECL Adds New Charges in June Electricity Bills: Consumers Face Rs. 0.77 Extra Per Unit Under Fuel and Sundries Heads

By Our Correspondent

Agartala, July 2, 2025

The Tripura State Electricity Corporation Limited (TSECL) has made a notable change in the electricity bills for the month of June 2025 (issued in July), introducing two new cost components: Fuel Charge and Sundries. These additions have caught the attention of consumers across the state, many of whom were surprised by the extra charges.

While "Fuel Charge" has been introduced as a completely new billing component, the "Sundries" section, earlier either unused or showing zero, now includes additional levies. Both of these items are being charged outside the regular slab rates, with a flat rate of 77.08 paise per unit, irrespective of consumption level.

This means, for example, a consumer using 500 units in a month will now have to pay Rs. 385 extra (500 x Rs. 0.7708) solely under these two heads.

Amid rising concerns and confusion among the public, TSECL issued an official clarification, stating that the charges are not arbitrary, but rather stem from the Fuel and Power Purchase Cost Adjustment (FPPCA) mechanism approved by the Tripura Electricity Regulatory Commission (TERC). The utility emphasized that these charges are part of a regulatory framework meant to offset fluctuating fuel prices and power procurement costs.

Why the New Charges Were Introduced?TSECL explained that the decision follows the Multi-Year Tariff Order issued by TERC, which came into effect from 1st August 2024. This tariff order includes: True-Up of expenses for FY 2022–23, Aggregate Revenue Requirement (ARR) for FY 2024–25 and Retail Tariff structure for the same fiscal year.

Most importantly, under Clause 7.9.2 of the TERC Tariff Notification dated 14 August 2024, it is clearly mentioned that TSECL is mandated to apply FPPCA based on fuel and power cost fluctuations.

TERC's 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 highlights that non-application of the FPPCA formula may lead to future financial constraints for TSECL, which would not be compensated in subsequent tariff revisions.

Notably, the Fuel and Power Purchase Cost Adjustment (FPPCA) is a mechanism used by power utilities to recover additional costs incurred due to fuel price hikes and increased power purchase expenses from central generating stations. It is not a permanent part of the tariff but varies periodically, usually on a quarterly basis, depending on market conditions.

TSECL further clarified that the FPPCA is levied retrospectively to cover revenue shortfalls and ensure financial stability, without the need for a full-scale tariff hike.

As of now, the FPPCA rate has been fixed at Rs. 0.7708 per unit, but this amount is subject to revision every quarter, as per regulatory norms.

While the explanation provides legal and financial justification, many consumers have expressed dissatisfaction with the sudden implementation of the charges without wider public notification. Some have demanded more transparent communication and advance intimation for such cost escalations.

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