Gujarat Electricity Bills to Rise With 3.99% Additional Surcharge

Gandhinagar: Electricity bills for households, commercial establishments, offices and industries across Gujarat are set to rise following the introduction of a 3.99% variable surcharge on the state’s power adjustment levy. The additional charge will be levied over the base Fuel and Power Purchase Adjustment Surcharge (FPPAS) of ₹2.45 per unit, with revised rates applicable to electricity consumed from July 1, 2026. Agricultural connections have been exempted from the increase.

The higher charges were scheduled to be reflected in electricity bills issued in September, along with arrears for the difference in rates applicable to consumption in July and August, sources said.

In a letter dated September 3, Gujarat Urja Vikas Nigam Ltd (GUVNL) directed the state’s four electricity distribution companies to recover the FPPAS at the revised rates until further orders. The companies are Madhya Gujarat Vij Company Ltd (MGVCL), Uttar Gujarat Vij Company Ltd (UGVCL), Dakshin Gujarat Vij Company Ltd (DGVCL) and Paschim Gujarat Vij Company Ltd (PGVCL).

The Gujarat Congress on Friday criticised the increase and demanded that the state government and power distribution companies disclose the rationale behind the surcharge. The party also called for a transparent account of electricity generation and power procurement costs.

According to the Congress, the revised levy could increase bills by ₹30 to ₹45 for consumers using up to 100 units, ₹90 to ₹135 for consumption of up to 200 units, ₹150 to ₹225 for 500 units and ₹300 to ₹450 for 1,000 units.

“Why is a 3.99% surcharge being imposed on people already struggling with inflation? How much have the costs of power generation and purchase actually increased, and will the government and power companies publish a clear account?” Congress leader Manish Doshi asked.

The base FPPAS stood at ₹2.30 per unit between April and June, with no variable surcharge applicable during that period. Under the revised structure, the base charge increased to ₹2.45 per unit, with the additional 3.99% levy further adding to consumers’ electricity bills.

Doshi also alleged that the surcharge calculation covered not only the base FPPAS and energy charges but also fixed or demand charges, potentially widening its impact on consumers.

Questioning the lack of a detailed public explanation, he sought a breakdown of changes in coal, gas and other power procurement costs, along with details of the surcharge calculation, its financial impact on consumers and measures to keep electricity affordable.

“Electricity is an essential necessity, not a luxury. In a democracy, consumers are not merely expected to pay bills; they also have the right to demand an account,” Doshi said. DeshGujarat