Gujarat civic bodies get waiver on power tariffs

The Gujarat Electricity Regulatory Commission (GERC) has ruled that the Gujarat Electricity Board (GEB) cannot apply the power tariff for industries on the Surat Municipal Corporation (SMC) or other civic bodies.

The ruling, which was on a petition filed against GEB by SMC, would enable civic bodies across the state save crores of rupees in power bills.

According to official sources, GEB started billing 18 high tension electricity connections of SMC, used for water supply and sewage disposal system, according to the HTP - II (A) tariff instead of the earlier HTP - I tariff from December 2004.

The move to apply the higher tariff was following a GERC order permitting GEB to apply HTP - II (A) tariff on the Sebic Research Centre, a company involved in research activities.

Though Sebic Research Centre was not involved in any manufacturing activity, GEB charged higher tariff on it. The board used the same logic on the 18 connections of SMC. GEB also slapped supplementary bills of Rs 4 crore on SMC for the period of October 2000 to November 2004.

Official sources said a petition was filed before GERC by SMC opposing the unjustified move of GEB. A bench comprising GERC chairman Subbarao and financial expert K P Gupta heard the petition on March 11, and issued a stay against GEB.

The final hearing of the petition was held before the commission on April 1, while the order was pronounced on May 3, sources said.

GERC has stated in its order that GEB misinterpreted its ruling, as the order in the case of Sebic Research Centre did not apply on the 18 power connections of SMC. The commission directed GEB to bill these connections according to the HTP - I tariff only, and also asked it to withdraw the supplementary bills issued to SMC.

Welcoming the GERC ruling, municipal commissioner Pankaj Joshi told Business Standard, "SMC will save approximately Rs 1.30 crore each year in view of the ruling. It will not have to pay the supplementary bills of Rs 4 crore issued to it by GEB either. The other civic bodies in the state, and the Gujarat Water Supply & Sewerage Board, also do not have to pay the supplementary bills, running into crores, and will also be able to save lakhs of rupees on account of the lower power tariff."