GERC rejects Torrent Power's move on tariff hike

Ahmedabad, Aug 3: The Gujarat Electricity Regulatory Commission (GERC) accepted two major proposals of Consumer Education and Research Society (CERS), Ahmedabad, while issuing its order on July 31 on the proposed revision in tariff.

CERS had proposed that separate tariffs for Ahmedabad and Surat should continue, and unscheduled interchange (UI) charges should not be included in the fuel price and power purchase adjustment (FPPPA) formula.

In a release here today, CERS said it welcomed the GERC's refusal of any revision in tariff, as had been demanded by Torrent Power Ltd. (TPL), for 2007-'08. The GERC also rejected the FPPPA formula submitted by the TPL.

The GERC directed the TPL to follow the FPPPA formula, approved for the Gujarat Urja Vikas Nigam Ltd. (GUVNL) and get the approval every quarter from October 1, 2007 for Ahmedabad and Gandhinagar and January 1, 2008 for Surat consumers.

K K Bajaj, Director (hon.) of CERS, in his representation to the GERC, had not only pleaded for the continuance of separate tariffs for Ahmedabad and Surat, but also objected to the inclusion of unscheduled interchange (UI) charges in the FPPPA formula.

CERS had also expressed its concern about the misuse of the FPPPA formula by the power distribution companies and requested the GERC to print as a footnote on electricity bills as and when the FPPPA charges are revised with the approval of the GERC.

The GERC directed the TPL to recover the deficit of Rs 24.29 crore by various cost-cutting measures. The GERC henceforth will follow multi-year tariff (MYT) from 1 April 2008 for three years.

UNI