GERC dumps average 2.63% power tariff hike on Surat consumers

Gandhinagar, 6 September 2011

Torrent power consumers in Surat are burdened with average 2.63% power tariff hike by the Gujarat Electricity Regulatory Commission (GERC).

The Torrent power limited, Surat had proposed an average tariff hike of 48 paise per unit. However, the Commission decided to allow an average tariff hike of 12 paise per unit i.d. 2.63% of existing tariff.

For residential consumers, the energy rates are increased by 20 paise for the monthly consumption upto 250 units. For monthly consumption of 251 units and onwards, the increase is 5 paise per unit. Fixed charges for residential consumer increase by Rs. 5 for single-phase consumer and by Rs. 15 for three-phase consumers.

For non-residential consumers, the energy rates are increased by 15 paise per unit. Fixed charge upto 10 BHP installations are increased from Rs. 20 per BHP per month to Rs. 35 per KW per month. For installation above 10 BJP, the fixed charges are increased from Rs. 30 per BJP per month to Rs. 50 per KW per month.

Demand charges for LTMD consumers are increased in the range of Rs. 15 to Rs. 35 per KVA per month. Energy charges are increased by 20 paise per unit.

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 change in existing time of use charges of 70 paise per units for HT consumer having contract demand more than 500 KVA.

Demand charges for HT consumer having billing demand above 500 KVA are increased by Rs. 50 to 55 per KVA per month. The energy charge is increased by 15 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.