GERC dumps 4.68% power tariff hike on Ahmedabad consumers

Ahmedabad, 6 September 2011

There is yet another burden of price hike on the citizens of Ahmedabad. The Gujarat State Electricity Regulatory Commission (GERC) has ordered hike in tariff of Torrent power corporation.

According to GERC order issued on 6 September, 2011, for residential consumers, the energy rates are increased by 20 paise per unit for the monthly consumption upto 250 unit. For monthly consumption of 251 units and onwards, the increase is 5 paise per unit. Fixed charges for residential consumers are increase by Rs. 5 for single-phase consumers and by Rs. 15 for three-phase consumers.

Residential installations having connected load more than 15 KW are covered under the demand based tariff.

For non-residential consumers, the energy rates are increased by 15 paise per unit. The fixed charge upto 5 BHP installations are increased from Rs. 20 per BHP per month to Rs. 35 per KW per month. For installation above 5 BJP, the fixed charge is increased from Rs. 35 per BHP per month to Rs. 45 per KW per month.

Demand charges for LTMD consumer are increased in the range of Rs. 30 to Rs. 50 per KW per month. Energy charges are increased by 20 paise per unit.

For all HT consumers, the demand charges are increased by Rs. 40 per KW per month. The energy charges for other than pumping stations are increased by 25 paise per unit and for pumping stations energy charges are increase by 10 paise per unit.

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

According to GERC release, the Torrent power limited, Ahmedabad had proposed an average tariff hike of 90 paise per unit. However, the commission decided to allow an average tariff hike of 22 paise per unit i.e. 4.68% of the existing tariff. While deciding the aggregate revenue requirement of the Torrent Power Limited, the Commission considered the directives/judgments of appellate tribunal for electricity (APTEL) on the review petitions of Torrent Power Limited.

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.