Regulator cuts power tariff

Domestic users in gram panchayat areas, industries to benefit

The Gujarat Electricity Regulatory Commission (GERC), the regulatory body for power production and distribution in the state, has slashed electricity charges for domestic consumers in gram panchayat areas.

The regulator has also reduced power tariff for industrial consumers using electricity during the night hours under the distribution areas of the Gujarat Electricity Board (GEB).

In another significant decision, the regulator has given two months to the Gujarat Electricity Board and private distribution companies Ahmedabad Electricity Company (AEC) and Surat Electricity Company (SEC) to file mutually decided tariffs.

Both, the AEC and SEC are promoted by the Ahmedabad-based Torrent group and they supply electricity in Ahmedabad and Surat cities, respectively.

In case the board and the two distribution companies AEC and SEC do not agree to a revised electricity tariff plan for the two cities, GERC will hear the GEB, the two companies and consumers (individuals and industries) before ordering tariff plans for the two cities.

However, with the GEB petitioning before the GERC for a tariff hike, it appears that there could be a slight hike in the electricity tariff in Ahmedabad and Surat.

GERC sources said as the Electricity Act in place and AEC and SEC have the option of purchasing electricity from sources other than GEB, a possible hike in electricity tariffs will solely depend on what price they purchase electricity.

While the Surat Electricity Company derives 100 per cent of its required power from the GEB, the AEC has a production capacity of around 500 MW. SEC has an annual requirement of 2,500 million units. AEC purchases about 1,000 million units from the board every year.

Prior to the petition for electricity tariff hike that the board filed with the regulator, the board was selling power to AEC at Rs 3.31 a unit, while it sold power to SEC at Rs 2.71 a unit.

In its petition to the regulator, the board had sought to increase the rate of power to the AEC from Rs 3.31 a unit to Rs 3.45 a unit.

Similarly, it had prayed for increasing rate of power to the SEC from Rs 2.70 to Rs 3.06 a unit. Had this petition been upheld, there would have automatically been a hike in electricity tariffs for consumers in Ahmedabad and Surat.

The new tariff rates that will come into effect after the GERC order, will be publicised by the Gujarat Electricity Board in the next few days, after which they will come in force within a week.

The GERC, chaired by G Subba Rao and comprising K P Gupta and Man Mohan as members, issued the orders on the petitions on May 25. The GERC held hearings for the petitions, filed by the GEB, between May 12 and May 21.

Earlier, the Gujarat Chamber of Commerce and Industry (GCCI) had strongly opposed the petitions that the Gujarat Electricity Board had filed before the GERC, contending that instead of ensuring that industries paid lesser for power, the GEB was proposing an additional burden of Rs 1,685 crore on consumers through the petitions.

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Concession lines

• Energy charge for domestic consumers in gram panchayats cut by 50 paise a unit.
• Tariff for industrial users using power in the night cut by 75 paise a unit.
• For high-tension users, the charge is increased by 25 paise a unit.
• Tariff rates for charitable institutions reduced by 60 paise a unit.
• R&D units now in the same category as high tension consumers.
• No changes in fixed charges and energy charges for agricultural users.