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Power tariffs reduced in Gujarat; Rs 414 cr gross benefit passed on to consumers

Giving a gross benefit of Rs 414 crore to the power consumers of state-owned Discoms in Gujarat, the Gujarat Electricity Regulatory Commission (GERC) Friday reduced power tariffs for residential and industrial consumers in the state.

By: Express News Service | Ahmedabad | Published: April 1, 2016 6:50:40 pm

Giving a gross benefit of Rs 414 crore to the power consumers of state-owned Discoms in Gujarat, the Gujarat Electricity Regulatory Commission (GERC) Friday reduced power tariffs for residential and industrial consumers in the state.

The revised tariffs that will be applicable from April 1, 2016, includes a 10 paise per unit reduction for all slabs of residential consumers and 25 paise per unit reduction for residential consumers living in villages located within the geographical jurisdiction of Urban Development Authority.

This decision comes after the four state-owned power distribution companies or discoms filed their petitions before GERC for truing up of their financials for 2014-15 and determination of tariff for 2016-17 under the GERC mutli-year tariff regulations. “The commission has decided to pass on the benefit of the surplus (earned by discoms) to the consumers by reducing energy charge for all the slabs of residential consumers by 10 paise per unit,” stated a release from GERC which approved a consolidated revenue surplus of Rs 115 crore for the four discoms for 2014-15 and worked out a revenue surplus of Rs 656 crore for 2016-17.

“The residential consumers of villages located within the geographical jurisdiction of Urban Development Authority are being billed as per the urban category tariff. The Commission decided to bill all such consumers as rural category tariff which is lower by 25 paise per unit than the urban category tariff,” it added.

Further in order to promote the night time usage and harnessing the benefit of such usage the Commission decided to remove the conditionality of one-third usage. Now the entire night time consumption between 10 pm and 6 am shall be eligible for concessional energy charge. To keep this change revenue neutral for distribution licensees, the night time concession is changed from 85 paise per unit to 40 paise for HTP-I tariff category. Further in order to incentives and promote night consumption with ample clarity to both stakeholders — consumers and licensees — the Commission has decided to relax the conditionalities of non-RGP night LTMD night and HTP-IV tariff categories.

The Commission has also reduced the tariffs of HT category by 14 paise/unit and LTMD category by 10 paise per unit. “With this modification, rationalisation in the tariff structure and revision in the tariff rates, there will be gross benefit of Rs 414.03 crore to the consumers of the state-owned discoms,” GERC added.

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