Power to cost more as Torrent raises fuel surcharge

Ahmedabad: Consumers in Ahmedabad, Gandhinagar and Surat will have to shell out more for the electricity they consume as Torrent Power Limited (TPL) has increased fuel price and power purchase adjustment (FPPPA) charge or fuel surcharge starting from July. There is, however, a breather for customers in the rest the state as Gujarat Urja Vikas Nigam Limited (GUVNL) has reduced the levy.
TPL has worked out a fuel surcharge of 93 paise for the first quarter (April-June) of fiscal 2018-19, which will be recovered in the second quarter (July-September). Torrent has already passed 10 paise increase on to the consumers as power distribution companies can raise 10 paise fuel surcharge without the approval of Gujarat Electricity Regulatory Commission (GERC). The remaining 83 paise hike will go to GERC for approval.

Accordingly, TPL has increased the fuel surcharge to Rs 1.86 per unit from the previous Rs 1.76 per unit. A power distribution company is allowed to offset any increase or decrease in power purchase cost by way of fuel surcharge.

State-run GUVNL, on the other hand, has reduced the fuel surcharge by 2 paise per unit from Rs 1.63 per unit to Rs 1.61 per unit. “GUVNL reduced the fixed cost proportionately in order to avoid any rise in FPPPA. GUVNL was forced to purchase costly electricity from Indian Energy Exchange (IEX) and gas-based power plants due to discontinuation of contracted power by private players,” said K K Bajaj, an energy and regulatory expert.