Assam power consumers may face a temporary increase of around 4–5 paise per unit from November as the state utility seeks to recover higher fuel and power-purchase costs, Chief Minister Himanta Biswa Sarma said. He ruled out reports of a sharp or permanent tariff increase and said the additional charge would be withdrawn once global fuel prices stabilise.
The proposed increase is linked to higher crude oil and diesel prices and the resulting rise in the cost of purchasing electricity from external sources, according to the chief minister. Referring to the conflict in West Asia, Sarma said crude oil prices had reached around $115 per barrel until Tuesday, adding to the cost pressures faced by power utilities.
“If the conflict subsides, the additional charge will be withdrawn immediately. This is purely a temporary measure and not a permanent increase in electricity tariffs,” Sarma said. He also stated that electricity procurement and generation involved fuel-related expenditure and was not available to utilities without cost.
The tariff issue is connected to a petition filed by Assam Power Distribution Company Limited before the Assam Electricity Regulatory Commission. The commission heard the petition on October 28 regarding the staggered recovery of accumulated fuel and power purchase price adjustment surcharge for the period from April to August 2026.
APDCL said variations in power purchase costs during financial year 2026–27 had led to the accumulation of approximately Rs 156 crore in FPPPAS, excluding supplementary bills. The company proposed recovering approximately Rs 155.59 crore through a five-month schedule running from November this year to March next year. Under its proposal, the monthly recovery amounts were Rs 40.07 crore in November, Rs 30.95 crore in December, Rs 28.97 crore in January, Rs 29.36 crore in February and Rs 26.23 crore in March.
The surcharge is linked to changes in the prices of gas and coal used for electricity generation. Instead of approving the exact month-wise schedule submitted by APDCL, the AERC allowed the utility flexibility to determine how the accumulated amount would be recovered within financial year 2026–27. The commission said APDCL must consider the effect of the levy on consumers and clearly distinguish the accumulated surcharge from the regular monthly FPPPAS becoming payable during the same period.
The commission also restricted the flexibility to the timing and month-wise recovery of the accumulated FPPPAS for April to August 2026. It said calculations and recovery for later periods would continue to follow the formula, methodology and timelines prescribed under the applicable regulations unless separately relaxed.
APDCL had proposed limiting the impact on financially weaker households. Consumers under the Jeevan Dhara category and Domestic-A consumers using up to 120 units were to be charged a reduced rate of Rs 0.05 per kilowatt, while other consumer categories would pay the computed rates. The AERC’s order requires the utility to account for consumer impact as it finalises the recovery schedule.
