Brushing aside Torrent Power Ltd's proposal to hike power tariff, Gujarat Electricity Regulatory Commission (GERC) today decided not to revise power tariff rates as proposed by Torrent Power Ltd, which distributes power in Ahmedabad, Gandhinagar and Surat. GERC's move to keep the tariffs unchanged has come as a major respite to its 21 lakh customers.
The regulator also directed the company to continue charging prevailing power tariff rates. "As major part of the year 2009-10 has already elapsed as the licensee (TPL) is required to file annual performance review for the year 2009-10 and tariff proposal for 2010-11 by December 15, 2009, the commission has decided not to revise tariff rates," GERC said in its order.
In June this year, TPL has sought 15 per cent hike in power tariffs. In fact, the company, in May-2008, had proposed tariff hike at the rate of 7.81%, 6.90% and 6.90% in the years 2008-09, 2009-10 and 2010-11 respectively. However, the regulator approved its demand only partially.
Power utilities were to file tariff revision under their annual performance reviews in April. However, all utilities, including public sector power firms, had sought extension for filing their annual performance review.
GERC has also commended company's effort to reduce distribution losses. As against the estimate of sale of 4,922 million units (MU) in multi-year tariff (MYT) order, TPL sold 4,737 million units (MU) in Ahmedabad-Gandhinagar area during the year 2008-09. Similarly, the sale in Surat distribution area during the year 2008-09 was 2,907 MU as against estimated sale of 3,186 MU. "The economic slowdown during the year 2008-09 is attributed as a major reason for drop in sale," GERC said in its order.
The commission has revised the net Aggregate Revenue Requirement (ARR)of Ahmedabad-Gandhinagar area for the year at Rs. 1,945 crore as against the earlier estimate of Rs. 2,195 crore and for Surat distribution area, net ARR is now revised to Rs. 1,223 crore as against the earlier estimate of Rs. 1,375 crore.
The resultant gap for year 2009-10 works out to Rs. 41 crore for Ahmedbad-Gandhinagar distribution area and Rs. 132 crore for Surat distribution area.
