Average 4.05% power tariff hike on consumers of GUVNL companies

Gandhinagar, 6 September 2011

As per the latest order by Gujarat Electricity Regulatory Commission (GERC), the consumers of GUVNL companies are burdened with average 4.05% tariff hike. According to GUVNL, the state owned distribution companies had proposed uniform tariff hike of 25 paisa per unit for all consumers except BPL and agricultural consumers. However, the commission decided to allow an average tariff hike of 13 paise per unit i.e. 4.05% of the existing tariff.

As per the order, for residential consumers, the energy rates are increased by 15 paise for the monthly consumption upto 250 units. For monthly consumption 251 units and onwards, the increase is 5 paise per unit.

Now, non-residential installations having connected load more than 40 KW are covered under the demand based tariff.

For non-residential consumers, the energy rates are increased by 20 paise per unit. The existing fixed charge on the basis of per BJP per month is now converted into per KW per month.

Time of use charges of 35 paise per units for consumption during peak hours is introduced for HT consumers upto 500 kva contract demand. No chaneg in existing time of use charges of 70 paise per units for HT consumers having contract demand more than 500 KVA.

Demand charges for HT consumer having billing demand above 500 KVA are increased in the range of Rs. 30 to Rs. 60 per KW per month.

For institutions registered with the charity commissioner, the energy charge is increased by 20 paise per unit.

For other LT categories the energy charges are increased by 25 paise per unit.

The salient features of the tariff orders:

-Tariff structures simplified and made more consumer friendly.
-There is no tariff hike for BPL(below poverty line) consumers and metered agricultural consumers.
-Difference between tariff rates for lighting consumption and motive power consumption in same premises is now removed. Now only one meter required in one premise.
-In view of difficulties in classifying consumers into different categories in the context of structural changes in economy during the recent period, it is decided to continue uniform tariff rates for non-residential consumers i.e. industrial, commercial, offices, telecom and IT.
-In order to keep balance between interest of consumers and distribution companies in accordance with the Electricity act, moderate tariff hike is inevitable.
-With this moderate tariff hike, now distribution companies are able to recover their aggregate revenue requirement in accordance with the regulations.
-The revised tariff comes into force w.e.f. 1st September, 2011.

The distribution licenses of the state had filed petitions before the Gujarat Electricity Regulatory Commission for truing-up for the FY 2009-10, annual performance review for the FY 2010-11 and determination of aggregate revenue requirement for the control period of FY 2011-12 to FY 2015-16 and determination of tariff for the FY 2011-12 under the multi-year tariff framework.

The GERC examined the petitions by following the procedure prescribed in the Electricity act 2003. An elaborate exercise was undertaken inviting comments and suggestions from the general public and stakeholders. The commission held public hearings on 23rd/24th June and 11th/12th July, 2011. Several stakeholders including individuals and organizations participated in the hearing.

The commission issued its orders on these petitions on 6th September, 2011. These orders cover trajectory for five years from FY 2011-12 to 2015-16. This is the second MVT order under covering control period from FY 2011-12 to 2015-16 under MYT regulations.