Torrent Power reduces charges by Rs 1.18 per unit

FPPPA charge was reduced by Rs 1.18 per unit as against Rs 1.98 per unit in the corresponding quarter of previous year

Torrent Power Limited on Monday announced reduction in its Fuel and Power Purchase Price Adjustment (FPPPA) charge for its consumers in Ahmedabad, Gandhinagar and Surat to Rs 0.80 per unit for current quarter.

FPPPA charge, a component of effective tariff which includes regulatory charge, was reduced by Rs 1.18 per unit as against Rs 1.98 per unit in the corresponding quarter of previous year. The announcement follows the reduction in FPPPA to Rs 1.30 per unit already effected by Torrent in Q1 FY17.

From July 1, 2016, Torrent Power also set a separate regulatory charge of Rs 0.18 per unit for Ahmedabad and Gandhinagar, and Rs 0.17 per unit for Surat due to Torrent's past approved under-recoveries. According to the company, after accounting for the regulatory charge, all categories of consumers in Ahmedabad, Gandhinagar and Surat will on a net basis save Rs 1 per unit as compared to previous year on account of the reduced FPPPA charge.

"If applied on a typical residential consumer's bill, this saving of Rs 1 per unit translates to a significant reduction of approximately 17 per cent in the effective tariff for such residential consumer," the company stated.

The company says, the reduction in effective tariff was on account of operational efficiencies and cost reduction in power procurement amidst continued investment in its operations in Ahmedabad, Gandhinagar and Surat to improve its services.