Home / Financial News / Torrent, state-owned discoms seek hike in power tariff in Gujarat

Torrent, state-owned discoms seek hike in power tariff in Gujarat

Power consumers in Gujarat may have to shell out more for the power they consume as state owned electricity distribution companies (DISCOMS) as well as private sector power supplier Torrent Power Limited (TPL) have filed petitions with Gujarat Electricity Regulatory Commission (GERC) seeking increase in power tariff for the year 2015-16.

While TPL, which supplies power to Ahmedabad, Gandhinagar and Surat, has sought a hike of 8 per cent for the power supplied to consumers of Ahmedabad and Gandhinagar, the proposed increase in tariff for Surat city is 11 per cent.

On the other hand, the state owned electricity companies have demanded a rise of 2.57 per cent in power tariff for 2015-16. The state owned DISCOMs include Madhya Gujarat Vij Company Limited (MGVCL), Dakshin Gujarat Vij Company Limited (DGVCL), Pashchim Gujarat Vij Company Limited (PGVCL), Uttar Gujarat Vij Company Limited (UGVCL), Gujarat Energy Transmission Corporation Limited (GETCO), Gujarat State Electricity Corporation Limited (GSECL) and State Load Despatch Centre (SLDC).

“We are seeking a normal increase in power tariff to offset expenditures incurred by state-owned power companies under various heads. The average tariff increase would be approximately Rs 10 paise per unit,” said, a senior state electricity company official. Existing power tariff varies for different categories.

Other companies, who have filed tariff revision petitions with the power sector regulator include Kandla Port Trust, MPSEZ Private Ltd, Torrent Energy Ltd and ASPEN Infrastructure Ltd.

As per provisions of Electricity Act, all electricity companies whether generation, transmission or distribution have to file their true up for previous year and tariff determination for the next financial year.

“If this increase in tariff is approved by GERC, then a burden of Rs 1,212 crore will fall on consumers of four state-owned DISCOMs and Rs 567 crores on consumers of TPL at Ahmedabad and Surat,” said an industry expert.

Consumer Education and Research Society (CERS), which represents consumers’ causes at various tribunals, has decided to oppose this increase in tariff sought by state-owned and private power companies. They will ask power companies to improve plant efficiency and other economical measures. CERS claims that TPL is seeking rise in power tariff to offset previous accumulated losses.

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