MPERC dismissed MP Discoms' review petition seeking to overturn/modify the FY2023-24 FPPAS True-up Order that found ₹376.28 Cr excess recovery from consumers
Petition under Section 94(1) (f) of the Electricity Act, 2003 (EA 2003), read with Regulation 40 of the MPERC (Conduct of Business) (Revision-1) Regulations 2016 and under Regulation 51 & 53.5 of \"Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Supply and Wheeling of Electricity and Methods and Principles for Fixation Charges) Regulations, 2021 dated 03rd December, 2021 and its amendment thereof; seeking review on the True up Order of Fuel and Power Purchase Adjustment Surcharge (FPPAS) dated 28th June 2024; filed by MPPMCL and MPPOKVVCL,
MPPMCL and the three MP DISCOMs sought review, under Section 94(1)(f) EA 2003 and MPERC regulations, of the Commission's 28.06.2024 True-up Order on Fuel and Power Purchase Adjustment Surcharge (FPPAS) for FY2023-24, which had found ₹376.28 Cr excess recovery from consumers (including carrying cost) and directed monthly refunds from July 2024 to March 2025. Petitioners argued actual power purchase cost escalation of ₹3,225.85 Cr far exceeded FPPAS billed (₹1,088.50 Cr), implying under-recovery of ₹2,137.35 Cr, not excess recovery, and sought methodology/formula changes, discontinuation of separate FPPAS true-up, and waiver of carrying cost.
- Review Petition No. 01/2025 dismissed and disposed of in entirety
- Commission held petitioners' methodology objection does not warrant reconsideration; FPPAS revenue and power purchase costs already reconciled via ARR True-up for FY2023-24 (Order dated 28.03.2025)
- Only a residual carrying cost impact of ₹11.69 Cr (out of the earlier ₹357.21 Cr provisional excess recovery + carrying cost) was adjusted and passed on to consumers via the ARR True-up Order
- Objection to the FPPAS recovery formula rejected as it mirrors Ministry of Power Electricity (Amendment) Rules 2022 and is outside the scope of a Section 40 review
- Consumer-level (vs aggregated state-level) refund methodology issue held already addressed via the ARR True-up adjustment; no further review warranted
- Request for regulatory amendments to FPPAS provisions rejected as outside scope of review petition; Commission noted a pending Ministry of Power/CEA proposal for an FPPAS stabilization fund and possible Rule 14 amendment, inviting future petitioner input if MYT Regulations are amended
- Discoms must continue passing on FPPAS-related adjustments (including the ₹11.69 Cr carrying cost) as already incorporated in the ARR True-up Order dated 28.03.2025
- No separate re-opening of the FY2023-24 FPPAS True-up; matter treated as closed
- Discoms may raise implementation difficulties, if any, under Regulation 51 (Power to remove difficulties) of MYT Regulations 2021
- Any request for amendment to FPPAS formula/Regulations to be pursued separately, not via review petition
- Discoms invited to submit comments if MPERC amends MYT Regulations 2021 pursuant to expected Central Government Rule 14 amendment / FPPAS stabilization fund proposal
- No further compliance timeline specified beyond existing ARR True-up implementation
- • C&I consumers on state DISCOM supply will not see any additional FPPAS-related credit beyond what's already merged into the FY2023-24 ARR True-up (₹11.69 Cr carrying cost only)
- • Confirms FPPAS is trued-up annually and reconciled with the broader ARR true-up process, reducing risk of double-counting but also limiting scope for discom claims of higher pass-through
- • Signals continued reliance on the current FPPAS formula (aligned to Central Rules) — no near-term relief for discoms' cost recovery gap, which could pressure future tariff/cross-subsidy surcharge revisions relevant to open-access C&I users
- • Ongoing Ministry of Power review of Rule 14 (FPPAS) and proposed stabilization fund is a signal for C&I buyers and RE/storage developers to monitor for future changes to power purchase cost pass-through mechanics that could affect open-access charges
This is essentially a procedural dismissal, not a substantive change — MPERC held that the discoms' concerns were already reconciled through the parallel FY2023-24 ARR True-up Order, leaving only a minor ₹11.69 Cr adjustment. For C&I buyers this confirms FPPAS remains a pass-through mechanism trued-up annually with limited discom recourse to enlarge recovery outside the ARR process. Watch the Ministry of Power's proposed FPPAS stabilization fund and Rule 14 amendment — any resulting MPERC regulatory change could alter power purchase cost pass-through and indirectly affect open-access surcharges and DISCOM tariff filings relevant to C&I open-access strategies in MP.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.