Ahmedabad, 2 June 2012

The Gujarat Electricity Regulatory Commission (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 Distribution Companies, as they had not filed their tariff petitions within the time limit as required under the Regulations.

The GERC directed all the four Distribution Companies to submit the audited accounts of FY 2010-11 and other relevant details in this regard. The GERC examined the submissions made by the four distribution Companies and undertook an elaborate exercise of inviting comments/ suggestions from the general public and stakeholders. The commission held public hearing on 7th May, 2012. Various stakeholders including individuals and organizations participated in the hearing.

The Commission (comprising Dr. P. K. Mishra, Chairman, Shri Pravinbhai Patel, Member and Dr. M. K. Iyer, Member) issued its Orders on these petitions on 2nd June, 2012.

The details of distribution losses in the distribution networks of the four state owned distribution companies for the year 2010-11 are given below-

UGVCL – approved 14%, actual 6.91%
DGVCL – approved 12.45%, actual 11.96%
MGVCL – approved 13%, actual 13.20%
PGVCL – approved 26%, actual 28.10%

The details of sales in Million Units for FY 2011-12 are given below-

UGVCL – approved 12436, actual 13193
DGVCL – approved 9761, actual 9837
MGVCL – approved 6267, actual 6329
PGVCL – approved 13917, actual 14258

Based on the audited accounts of the FY 2010-11, the Commission has revised Aggregate Revenue Requirement (ARR) for FY 2010-11 of the four Distribution Companies. Accordingly, the resultant gap for FY 2010-11 works out as Rs. 240 crore. Further the consolidated gap for FY 2012-13 is projected as Rs. 1260 crore. The overall gap is estimated to be Rs. 1500 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.

-No increase in power tariff for BPL consumers.

-No increase in tariff rates for the first 50 units of monthly consumption of all Residential consumers. BUT INCREASE OF 10 PAISE PER UNIT AFTER FIRST 50 UNITS FOR RESIDENTIAL CONSUMERS

-No increase in tariff for Agricultural consumers.

-Energy Charges increased by 10 paise per unit for other categories.

-FPPPA charges expected to be reduced by 16 paise per unit for the quarter starting from July’2012, hence effectively there will be reduction in the electricity bill of the consumers.

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