New Delhi, Aug. 10 -- The Draft National Electricity Policy, 2026 proposes that changes in power purchase costs, including fuel costs, be passed on to electricity consumers through an automatic monthly adjustment mechanism, the government told the Rajya Sabha on Monday.

In a written reply, Minister of State for Power Shripad Naik said the draft policy proposes an automatic monthly Fuel and Power Purchase Cost Adjustment (FPPCA) mechanism to reflect variations in the cost incurred by electricity distribution companies in procuring power.

At the same time, the proposed policy envisages creating a suitable stabilisation fund to moderate the impact of fluctuations in power purchase costs on consumers.

The proposal is part of the Draft Nati...