Did you know your power bill has quietly shot up in Gujarat?
Your bill would have gone up by Rs 500, if you use 250 units a month, thanks to the revised FPPPA.
Don't blame the summer heat for the spike in your electricity bill. Instead blame the rise in fuel prices, which has led to a sharp increase in fuel charges in your electricity bill, and that too without you even realising it. The increased fuel charges would lead to an additional burden of few thousand crores on the citizens.
The Fuel Price and Power Purchase Agreement (FPPPA) charges, which power distribution companies charge from consumers depending on the variation in fuel costs and freight rates, have more than doubled in just six months.
In the case of Torrent Power Limited, which distributes power in Ahmedabad, Gandhinagar and Surat, the FPPPA charge went up from 69 paise per unit in September 2011 to 145 paise per unit in February 2012, an increase of 76 paise or 110% in six months.
The steep hike in FPPPA charges for Torrent Power was approved by Gujarat Electricity Regulatory Commission (GERC) in February. The regulator had approved a revision in fuel adjustment charges even in January when it was revised to 107 paise. Power discoms do not need GERC nod for raising FPPPA charges by up to 10 paise in a quarter.
"The staggering rise in FPPPA charges and the resultant higher electricity duty has translated into an increase of almost 90 paise per unit in the cost of power in six months," said an official.For an average household consuming 250 units, the electricity bill in September 2011 would have been around Rs1,100. However, for similar consumption in February 2012, the bill went up to Rs1,350.
Exact figures are not available, but an estimated 50,000 Million Units (MUs), i.e. 5,000 crore units of electricity are consumed by residential, commercial and industrial consumers in the state every year. The increased FPPPA charges would lead to additional annual burden of around Rs4,500 crore - Rs5,000 crore on power consumers in the state.