Gujarat: Power to cost more as GUVNL hikes fuel surcharge

Gujarat Urja Vikas Nigam Limited (GUVNL) consumers will have to pay more for electricity as the state-run power utility has increased its fuel price and power purchase adjustment (FPPPA) charge or fuel surcharge for July to September 2020.

GUVNL directed its four power distribution companies (discoms) to levy a fuel surcharge of Rs 2 per unit from all categories of consumers, except agricultural, for the July-September quarter as against Rs 1.9 per unit in April-June.

GUVNL has worked out a fuel surcharge raise of 12 paisa per unit, which is to be recovered from July.

However, it has passed on a 10 paisa increase to consumers as the company does not require Gujarat Electricity Regulatory Commission (GERC) approval to increase fuel surcharge by up to 10 paisa/unit. Hence, it has already asked its discoms to charge Rs 2/unit FPPPA for July-September.

For the remaining 2 paisa, GERC approval will be sought and if approved by the regulator, it will be levied from the quarter starting October.

A power distribution (discom) collects FPPPA or fuel surcharge from consumers to offset increases or decreases in fuel (coal and gas) cost.

GUVNL supplies electricity to most parts of the state, except Ahmedabad, Gandhinagar and Surat.

The already effected increase of 10 paisa/unit is estimated to translate into a combined burden of Rs 213 crore on more than 1 crore customers in the months of July, August and September, industry sources said. GUVNL had reduced the fuel surcharge for April-June period by 16 paisa per unit.

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