Saturday 2 June 2012

Electricity tariff goes down for BPL, agriculture and residential customers


AHMEDABAD: The Gujarat Electricity Regulatory Commission (GERC) directed the state utilities and private players to reduce their power tariff for the consumers of state. The development comes as at a time when power tariff is on rise in most states.

The commission initiated suo motu proceedings for truing-up of FY'11 and for determination of tariff for FY'13 under the Multi-Year Tariff (MYT) framework for the state owned distribution companies, as they had not filed their tariff petitions within the time limit as required under the regulations.

The regulator also passed a tariff order for Torrent Power that distributes electricity in Ahmedabad and Surat. The GERC directed all the four distribution companies to submit the audited accounts of FY'11 and other relevant details in this regard.

It examined the submissions made by the four distribution companies and undertook an elaborate exercise of inviting comments and suggestions from the general public and stakeholders. The commission held public hearing on May 7, 2012. Various stakeholders including individuals and organisations participated in the hearing.

The Commission issued its Orders on these petitions on June 2, 2012. Based on the audited accounts of the FY'11, the commission has revised aggregate revenue requirement (ARR) for FY'11 of the four distribution companies. Accordingly, the resultant gap for FY'11 works out as Rs 240 crore. Further the consolidated gap for FY'13 is projected as Rs 1260 crore. The overall gap is estimated to be Rs 1,500 crore.

However, considering the increases in FPPPA charges during the last year, the commission has decided to increase the energy charges only by 10 paise for various categories of consumers except 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%. The revised rates will be effective for electricity consumption from 1st June, 2012.

"Looking to the current fuel charges, it is expected that the FPPPA 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." read GERC's media statement. Meanwhile, Torrent Power Limited (TPL) too filed petitions for Ahmedabad and Surat cities before the regulator for truing-up of FY' 11 and for determination of tariff for FY' 13.

In the Multi-Year Tariff (MYT) order, the commission approved distribution losses of 6% for Surat distribution area and 10% of Ahmedabad-Gandhinagar distribution area. However, the actual distribution losses achieved by TPL are 4.64% in Surat area and 8.18% in Ahmedabad-Gandhinagar area for the FY'11.

The actual sale in Ahmedabad-Gandhinagar area was 5444 MU as against 5731 MU estimated in MYT Order. Similarly, the sale in Surat distribution area for FY 2010-11 was 3085 MU as against estimated sale of 3647 MU. Based on the segregated audited accounts of the FY 2010-11, the Commission has revised Aggregate Revenue Requirement (ARR) for FY 2010-11 of Ahmedabad-Gandhinagar distribution area and Surat Distribution area. The overall gap of TPL is estimated to be Rs. 116 crore.

However, considering the increases in FPPPA charges during the last year, the commission has decided to increase the energy charges only by 10 paise for all consumers except BPL consumers, for the first 50 units of monthly consumption of residential consumers and for agricultural consumers.

The additional revenue is projected at Rs 89 crore, which works out as a tariff hike of 1.91%. The revised rates will be effective from June 1, 2012 Looking to the current fuel charges, it is expected that the FPPPA charges will be reduced from the current level, and hence, effectively there will be reduction in the electricity bill of the consumers even after a moderate revision in energy rates.
Original Article Here

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