The cost of electricity in Gujarat will go up for a third time during the year 2023,
after the Gujarat Urja Vikas Nigam Ltd engages in bulk purchase and sale of power hiked the “fuel surcharge” applicable on every unit of electricity consumed by consumers in the state.
The hike of 25 paise per unit in fuel surcharge will be applicable for consumers of four electricity distribution companies (discoms) -Uttar Gujarat Vij Company Limited (UGVCL), Paschim Gujarat Vij Company Limited (PGVCL), Madhya Gujarat Vij Company Limited (MGVCL) and Dakshin Gujarat Vij Company Limited (DGVCL) – for the period between July and September 2023.
Though the hike appears miniscule, it will take the total fuel surcharge applicable on every unit of electricity consumed to Rs 3.35 paise and the total cost of one unit of electricity for residential consumers (consuming about 200 units) to Rs 8.54 per unit.
A residential consumer in Gujarat pays a fixed charge, energy charge, fuel surcharge and electricity duty as part of their electricity bill provided once every two months by the state discoms.
The hike is applicable to all categories of consumers except agricultural consumers. “It is requested to recover the FPPPA of Rs 3.35 per unit for the period from July 1, 2023, till further communication from all category of consumers, except agriculture consumers, since the government is giving subsidy to discoms for agriculture consumption,” a circular from GUVNL to its four discoms stated. Since April 2021, the FPPPA has already been hiked 10 times by GUVNL. The charges that the customer pays for every unit of electricity consumed has increased by 86 per cent, from Rs 1.8 per unit to Rs 3.35.