Power tariff cut by 10 paise per unit for Gujarat discom consumers

Rs 414 crore worth benefit of surplus revenue passed on to consumers

Passing on benefits worth Rs 414.03 crore from surplus revenues from state discoms to consumers, Gujarat Electricity Regulatory Commission (GERC) reduced power tariff by 10 paise per unit for all residential consumers in Gujarat. The revised tariff is applicable from April 1, 2016.

Based on a petition filed by four state discoms for truing up of their financials for 2014-15 and determination of tariff of fiscal 2016-17, the state electricity regulator rationalised the tariff for various category of consumers.

While the tariff cut for LTMD category of consumers was 10 paise per unit, that for HT category was 14 paise per unit. Following the revision of tariff structure, there will be gross benefit of Rs 414.03 crore to the consumers of the state-owned discoms.

Against the consolidated revenue gap of Rs 234.77 crore claimed by the Discoms, the Commission approved the consolidated revenue surplus of Rs 115.55 crore.

Further, GERC also capped the FPPPA charges at Rs 1.35 per unit as against the present FPPPA of Rs 1.98 per unit. for the consumers of private sector power producer, Torrent Power Limited. The power consumers of all the categories in Ahmedabad, Surat and Gandhinagar cities will get reduction of 18 paise per unit.

Torrent Power Limited had proposed to recover the past periods gaps of Rs 638.51 crore by introducing 'regulatory charges' at 60 paise per unit.

However, GERC approved to recover the final past periods gaps of Rs 470.50 crore after adjusting the revenue surplus of fiscal 2016-17 by fixing the regulatory charge at 45 paise per unit. Once these past periods gaps get recovered, the regulatory charge recovery shall be stopped, the commission stated in its order.