Torrent-GUVNL differ over tariff hike proposal

Torrent Power SEC (TPSL) and Gujarat Urja Vikas Nigam (GUVNL) "" electricity board of the state, are at loggerhead over power tariff. GUVNL has insisted for revision of tariffs charged to TPSL by 15 paisa per unit of power.

TPSL is a power distribution company of Torrent group which receives power from GUVNL and distributes it to its customers in Surat.

In an order issued last week. Gujarat Electricity Regulatory Commission has directed TPSL to submit its revenue requirement statement for revision of its tariff being charged to its consumers.

TPSL has argued that revision in tariff by the supplier state electricity board would result into additional burden to the tune of Rs 34 crore for the company.

With proposed increase in tariff as energy charges TPSL will have to pay Rs 3.12 per unit as against existing Rs 2.97 per unit to GUVNL. Torrent groups is given a six week time starting from last week to submit its revenue requirement statements to GUVNL.

In another order passed last week, GERC has directed GUVNL to increase the power supply to TPSL from existing 372 MVA to 500 MVA and sign a contract demand agreement in this regard earliest possible.

The state electricity board in its argument had insisted that TPSL keeps changing its demand for power very often resulting into supply related difficulties for the board.

According to GUVNL for the current summer time peak requirement between April,2006 to June,2006 TPSL may have to make its own arrangement for the additional power.

GUVNL says it will supply only 372 MVA being the contract demand at the time of determination of tariff by Commission in its tariff order dated 10.10.2000.

In early March through a letter GUVNL informed TPSL that if it continues to draw power of more than 372 MVA from April 1 onwards, GUVNL will either restrict the supply or may charge the price of Rs.4.70 per unit for additional quantity of power against existing agreed price Rs 2.97 per unit.

GERC in its order observed that in the past GEB has accepted request for additional power supply from TPSL and since TPSL has continued to draw more power from the board more than once, both sides needs to sign contract demand agreement for 500 MVA as against existing one for 372 MVA signed in 2000.

The new demand contract between the two sides would automatically increase the supply level for TPSL and solve the possible power supply crisis for the industrial, domestic and commercial customers in Surat in South Gujarat.