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Hike surcharge, not power tariff: Discoms

The petitions were supposed to have been filed by November 30, but the process was delayed due to the assembly elections and the Model Code of Conduct

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There are four discoms in the state
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The four state-owned power distribution companies (discoms) have not demanded any increase in electricity tariff for the coming year, but have sought an increase of six paise in the Fuel and Power Purchase Price Adjustment (FPPPA) charge.

The four discoms, DGVCL, PGVCL, MGVCL and UGVCL, filed their petitions for the true-up of financial year 2016-17 and determination of power tariff for 2018-19 with state's electricity regulator, Gujarat Electricity Regulatory Commission (GERC) on January 15. The petitions were supposed to have been filed by November 30, but the process was delayed due to the assembly elections and the Model Code of Conduct.

The discoms have not sought any increase in electricity tariff for the coming financial year. However, they have demanded that the FPPPA base price, which changes as per variations in fuel price, be increased from Rs 1.43 per unit to Rs 1.49.

The discoms have also demanded abolition of monthly meter rent, and have proposed to the power regulator to merge it with fixed charges. Energy and regulatory expert KK Bajaj said that this is a welcome move.

According to officials, the petitions are likely to be heard in the first week of March. Stakeholders, consumer groups and individuals can file objections before GERC by February 19.

Incidentally, private sector player Torrent Power, which filed its tariff petition last week, has also not sought any tariff hike for 2018-19. Torrent, however, has sought regulatory charges citing under recoveries of past years.

According to Torrent's petitions, it has under recovery of Rs 391 crore in Ahmedabad distribution area, which comprises Ahmedabad and Gandhinagar, and Rs 68 crore in Surat. It has proposed to recover the dues through regulatory charge of 25 paise per unit for Ahmedabad, and 20 paise per unit for Surat.

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