In what could offer some much needed respite to electricity consumers of Ahmedabad, Surat and Gandhinagar, Torrent Power Ltd (TPL), which supplies power to these three cities, has decided to reduce fuel price and power purchase adjustment (FPPPA) charges by 6 paise per unit at 78 paise per unit with effect from April 1, 2010.
"TPL has worked out FPPPA charges or fuel surcharge of 78 paise per unit for the fourth quarter of 2009-10, which shows a reduction of 6 paise per unit from 84 paise per unit for the previous quarter," said sources close to the development. The lower fuel surcharge is effective from 1 April, 2010.
Torrent Power has informed this in written to Gujarat Electricity Regulatory Commission (GERC), which had earlier hinted at reduction in fuel surcharge by TPL.
"Yes, Torrent Power has reduced the fuel surcharge for Q4 to 78 paise per unit," the company said in an emailed reply.
The development assumes importance in the wake of GERC approving an average power tariff hike of 9 paise per unit for TPL on 31 March, 2010.
The state power regulator had estimated additional burden of Rs 75 crore on TPL consumers on account of increase in power tariff.
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However, the reduction of 6 paise per unit will ease the burden on electricity bills of TPL consumers.
On the other hand, Gujarat Urja Vikas Nigam Ltd (GUVNL), a state run apex electricity company in Gujarat, has marginally increased fuel surcharge by 1 paise at 63 paise per unit for the fourth quarter of 2010-11 from 62 paise per unit for the third quarter of 2009-10.
Fuel surcharge hike by GUVNL will not affect its consumers as the company trimmed the surcharge from 91 paise per unit to 62 paise per unit in the first three quarters of 2009-10. Meanwhile, GERC officials indicated further softening of fuel surcharge in quarters to come.