Gujarat Electricity Regulatory Commission (GERC) has granted 10 paisa per unit hike in tariff to narrow down losses estimated by power distribution companies. However, one might be surprise das electricity bills are likely to reduce.
Even though power distribution companies did not file tariff petitions within the stipulated time limit, GERC initiated suo motu proceedings as per direction from Appellate Tribunal. It has allowed 10 paisa per unit power tariff hike to four public sector power distribution companies and Torrent Power with effect from June 1, 2012. The commission has decided to increase tariff by only 10 paisa per unit considering last year’s major hike in Fuel Price and Power Purchase
Adjustment (FPPPA) charges.
PK Mishra, chairman of GERC, said that FPPPA charges are estimated to be lower by 16 paisa per unit in case of public power distribution companies and 20 paisa per unit in case of Torrent Power. “As a result, overall electricity bill is likely to come down despite tariff hike,” said Mishra.
Moreover, GERC has not allowed tariff hike for BPL and agri-consumers. Besides, there won’t be any hike for first 50 units of monthly consumption of all residential consumers. “Around 46% of consumers will not be affected by this hike, but FPPPA reduction will benefit all 1.49 lakh consumers across the state,” he said.
However, FPPPA is revised every quarter and the power distribution companies are allowed to raise 10 paisa per unit by just informing GERC about the decision. Last year, the power distribution companies increased FPPPA by around 60 paisa per unit making power costly for consumers. Four public power distribution companies – UGVCL, DGVCL, MGVCL and PGVCL – had estimated gap of around Rs1,500 crore, but GERC has allowed tariff hike to make up for Rs329. In case of TPL, a gap of Rs116 crore was estimated, but the commission granted provision for Rs89 crore.
