Gujarat Urja Vikas Nigam, Torrent Power hike fuel surcharge

Citing higher power purchase cost, the Gujarat Urja Vikas Nigam Limited (GUVNL) and Torrent Power hiked the fuel surcharge on electricity for the current quarter. GUVNL hiked the surcharge for Jan-March 2019 by a steep 28 paise to Rs1.99 per unit, while Torrent hiked it from Rs2.09 per unit to Rs2.11.

GUVNL said the FPPPA charge for third quarter worked out at Rs2.07 per unit as against Rs1.80 for the second quarter. It hiked the Fuel and Power Purchase Price Adjustment (FPPPA) charge for Jan-March quarter to Rs1.99 per unit from Rs1.71 for Oct-Dec 2018 quarter.

In a letter to the four power distribution companies, GUVNL asked them to charge FPPPA at Rs1.99 per unit for the quarter from all categories of consumers, excluding agricultural consumers.

Energy expert KK Bajaj said the fuel surcharge hike would impact 1.40 crore consumers of the four companies.

GUVNL said the Rs1.99 hike includes Rs1.80 per unit surcharge approved by Gujarat Electricity Regulatory Commission (GERC) for the previous quarter, recovery of past under-recovery of 9 paise, and additional 10 paise surcharge for the third quarter.

Distribution companies require prior approval from GERC if the change in fuel surcharge is 10 paise or more per unit. GUVNL said that the increase in FPPPA charge for the third quarter 27 paise per unit, and it has sought the power regulator's approval for recovery of balance FPPPA of 17 paise.

A Torrent Power spokesperson attributed the increase in fuel surcharge to higher power purchase cost, and rise in crude oil prices in earlier quarters.