GERC announces moderate increase in power tariff

Giving the much-awaited ruling on applications filed by Torrent Power Ltd and six power utilities of the state,the Gujarat Electricity Regulatory Commission on Saturday announced new tariffs,which will be applicable from February 1.

Written by Express News Service | Ahmedabad | Published:January 18, 2009 3:05 am

Giving the much-awaited ruling on applications filed by Torrent Power Ltd (TPL) and six power utilities of the state,the Gujarat Electricity Regulatory Commission (GERC) on Saturday announced new tariffs,which will be applicable from February 1.

In TPL’s Ahmedabad and Surat areas,the overall tariff rates have been increased by 1.3 per cent and 1.64 per cent respectively. Out of a total 11.16 lakh residential consumers of Ahmedabad and Gandhinagar,10.2 lakh (91 per cent) will not be impacted by this,while in Surat,of the 3.78 lakh consumers,3.2 lakh (86 per cent) will remain unaffected.

Out of a total 3.06 lakh commercial consumers of Ahmedabad and Gandhinagar,2.63 lakh (86 per cent) will not be affected,whereas of the 1.61 lakh such consumers in Surat,0.62 lakh (39 per cent) will not be affected,said a GERC release issued today.

The commission has not allowed any major changes in tariff structure and categories proposed by TPL. “Looking at the current fuel prices,it is hoped that the FPPPA charges would be reduced during the next quarter from the current level. And effectively,there could be reduction in electricity bills of most of the consumers even after a modest revision in energy rates for some category of consumers,” it added.

Issuing orders for the period 2008-09 to 2010-11 under multi-year tariff framework,the commission approved aggregate revenue requirement and tariff rate increased by 1.4 per cent as compared to the 7.8 per cent asked by the licenses. The cross subsidy charge,which was 100 per cent for both the areas,is now fixed at 52 paise for Ahmedabad/Gandhinagar areas and 73.65 paise for the Surat area “to accelerate open access as envisaged in the National Electricity Policy”.

As for the state government-run six power companies,the commission has fixed production cost at Rs 2.37 per unit and approved expenditure of Rs 6,177 crore for generation of 1,350 MW. Transmission charges have been cut from Rs 2,510/MW/day to Rs 2,410/MW/day,while cross subsidy charge is down from Rs 1 to 51 paise per unit.

The six power companies: Gujarat State Electricity Corporation Ltd,Gujarat Energy Transmission Corporation Ltd,Uttar Gujarat Vij Company Ltd,Dakshin Gujarat Vij Company Ltd,Madhya Gujarat Vij Company Ltd and Paschim Gujarat Vij Company Ltd have 67.5 lakh residential consumers,of whom 65.3 lakh will not be affected. Also,of their 8.5 lakh commercial consumers,seven lakh will not be affected,it was stated.

New tariff applicable from February 1
* No change in fixed charges
* No increase in energy charges for consumption up to 200 units
* No impact of tariff hike on 96 per cent residential and 82 per cent commercial users
* Tariff fixed at Rs 1.50 per unit for BPL category consumers
* Two lakh pending power connection applications of farmers approved
* Energy charges down from Rs 2.25 to Rs 2 for high tension and low tension consumers during night hours for government power companies
* Government power companies allowed only 1.5 per cent hike in tariff for one year
* No change in fuel and power purchase price adjustment formula

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