Gujarat - Govt power companies plan tariff hike
Wednesday, 04 May 2011

Highly placed sources said that the proposed hike could be anywhere from 30 paise to 70 paise per unit. If approved, this would mean an additional burden of several hundred crores on power consumers in the state.
The four power distribution utilities of the state government want an upward revision in the power tariff, and are expected to approach the Gujarat Electricity Regulatory Commission (GERC) soon, informed sources said. The four distribution companies - Dakshin Gujarat Vij Company Limited (DGVCL), Paschim Gujarat Vij Company Limited (PGVCL), Uttar Gujarat Vij Company Limited (UGVCL) and Madhya Gujarat Vij Company Limited (MGVCL) - which distribute electricity in different geographical areas of the state, will approach GERC soon seeking its nod to increase the power tariff for the year 2011-12.

The four utilities were formed after unbundling of the erstwhile Gujarat Electricity Board. Sources said that the move by the power distribution utilities comes in view of the gap in net aggregate revenue requirement and the revenue from sale of power at existing tariff rates.

They also said that the utilities would seek the revision with effect from April 1, 2011.

Confirming the development, state energy minister Saurabh Patel said, "The petitions to be submitted before the Regulatory Commission are being prepared by the four government distribution companies. The petitions are likely to be submitted before GERC soon."

Patel refused to disclose the quantum of power tariff revision the four companies are planning to seek from the regulator.

However, highly placed sources said that the proposed hike could be anywhere from 30 paise to 70 paise per unit. If approved, this would mean an additional burden of several hundred crores on power consumers in the state.

Sources said that the petitions will be submitted with GERC after the regulator takes a decision on the power tariff revision petition by Torrent Power.

Torrent Power has sought tariff revision to generate additional revenue of Rs 658.40 crore in Ahmedabad and Surat. The petition is slated to come up for hearing before GERC on May 7.

DGVCL distributes power in seven districts, viz. Bharuch, Narmada, Surat (except parts of Surat City), Tapi, Dangs, Navsari and Valsad.

MGVCL's distribution network is in Vadodara, Anand, Kheda, Dahod and Panchmahals. Similarly, UGVCL distributes electricity in Banaskantha, Sabarkantha, Mehsana, Patan, Ahmedabad and Gandhinagar.

The operational area of PGVCL is spread over Surendranagar, Amreli, Bhavnagar, Rajkot, Jamnagar, Junagadh and Kutch.