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State power regulator, Gujarat Electricity Regulatory Commission (GERC) has allowed an average 34 paise per unit of tariff hike for state-run distribution companies (discoms).
The only private sector power utility in the state, Torrent Power Ltd has been given an average 31 paise per unit (kwh) of tariff hike for the year 2013-14.
As a result of these hikes, the power consumers will have to bear additional burden of Rs 2,124 crore.
The four discoms namely, Uttar Gujarat Vij Company Ltd (UGVCL), Paschim Gujarat Vij Company Ltd (PGVCL), Madhya Gujarat Vij Company Ltd (MGVCL) and Dakshin Gujarat Vij Company Ltd (DGVCL) had sought a tariff hike of 48 paise per unit, against which GERC approved an average hike of 34 paise per unit. The new tariff will be effective from April 1, 2013. The tariff order for the state discoms and Torrent Power was issued on Tuesday.
"The revised tariff will generate additional revenue of Rs 1,809 crore for the state discoms. This will improve their financial health further and reduce their dependence on government funds or equity partnership for expansion projects," said a GERC official.
According to sources, this is the steepest tariff hike in last 10 years in Gujarat. However, the tariff hike will not apply to customers falling under the below poverty line (BPL) category. For the agriculture consumers, tariff hike is 10 paise per unit for metered connections.
For the Torrent Power, the regulator approved tariff hike of average 31 paise per unit for power consumers in Ahmedabad and Surat. The company had demanded tariff hike of 48 paise per unit.
"We expect the Fuel Price and Power Purchase Agreement (FPPPA) charges for the quarter April-June would come down for GUVNL companies and Torrent Power both. So, the effective hike in power cost would be lesser," said the GERC official.
According to GERC official, the initial estimates suggested that the FPPPA charges for April-June quarter are expected to fall by 13 paise and 29 paise for GUVNL companies and Torrent Power respectively.
"Therefore, for the customers of state discoms, the effective tariff hike will be around 21 paise, while for those of Torrent Power, the effective tariff hike will be just 2 paise," the official added.
