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Gujarat

No increase in power tariffs for fiscal yr 2023, Gujarat

by TLAteam December 9, 2021December 9, 2021
written by TLAteam December 9, 2021December 9, 2021
No increase in power tariffs for fiscal yr 2023, Gujarat

The state government’s four power distribution firms have decided not to raise power tariffs for the financial year 2022-23.

Business News

The four companies—Paschim Gujarat Vij Company Limited (PGVCL), Uttar Gujarat Vij Company Limited (UGVCL), Madhya Gujarat Vij Company Limited (MGVCL), and Dakshin Gujarat Vij Company Limited (DGVCL)—have filed petitions with the Gujarat Electricity Regulatory Commission (GERC) to determine tariffs for the year 2022-23.

The combined revenue shortage for all four discoms is expected to be Rs 568 crore, which can be covered by cost-cutting measures. As a result, they have not recommended any modifications in the tariff system for 2022-23.

“GUVNL-affiliated discoms have not requested a tariff rise for the fifth year in a row. The rate is, however, raised indirectly every year as FPPPA (Fuel Price and Power Purchase Adjustment) costs rise “K K Bajaj, an energy and regulatory specialist in the city, agreed.

“On paper, the lowest slab of prices for residential consumers is Rs 3.20 per unit, but after factoring in FPPPA (fuel surcharge) taxes and government duty, a consumer pays roughly Rs 7.00 per unit,” he added.

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