New Delhi, Aug. 11 -- The Draft National Electricity Policy, 2026 proposes an automatic monthly mechanism to pass changes in power purchase costs, including fuel costs, on to electricity consumers, Minister of State for Power Shripad Naik said.

FPPCA Mechanism Under Draft Policy

In a written reply to the Rajya Sabha on Monday, Naik noted that the draft policy proposes an automatic monthly Fuel and Power Purchase Cost Adjustment (FPPCA) mechanism to reflect changes in the cost incurred by electricity distribution companies (DISCOMs) while procuring power, ANI reported.

The policy also proposes a stabilisation fund to moderate the impact of fluctuations in power purchase costs on consumers. The government clarified that the proposal is p...