According to reports, while raising the power tariff rate by 10 paise per unit, the Gujarat Electricity Regulatory Commission (GERC) today reduced the Fuel and Power Purchase Adjustment (FPPA) charges up to 20 paise per unit, which will result in reduction of overall electricity bill for consumers.
The GERC initiated suo motu proceedings for truing-up of FY 2010-11 and for determination of tariff for FY 2012-13 under the Multi-Year Tariff (MYT) framework for the state-owned power distribution companies, as they had not filed their tariff petitions within the time limit as required under the regulations.
The GERC directed four distribution companies to submit the audited accounts of FY 2010-11 and other relevant details in this regard. “We have decided to increase the tariff rates by 10 paise per unit for all the power distribution companies,” GERC chairman P K Mishra said. “However, this hike will not be implemented for BPL consumers, for the first 50 units of monthly consumption of residential consumers and for agricultural consumers.
“The additional revenue is projected at Rs 329 crore, which works out as tariff hike of 1.53 per cent. The revised rates will be effective for electricity consumption from June 1, 2012,” Mishra said. “However, the FPPA charges will be reduced, as we have devised a new methodology of calculations for them. They are likely to be reduced by 16 to 20 paise per unit,” Mishra said.
“Looking to the current fuel charges, it is expected that the FPPA charges will be reduced from the current level and effectively there will be reduction in the electricity bill of the consumers even after a moderate revision in energy charges,” Mishra further said. This will have to be implemented by all the government and private power distribution companies of state,” Mishra further said.