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For the first time in the last three years, the Gujarat government – ahead of the 2024 Lok Sabha polls – announced a 15 per cent reduction in fuel surcharge, for all categories of electricity consumers in the State.
Also read: Discoms from Gujarat, Maharashtra shine in Power Ministry’s FY23 integrated performance rating
The State Discoms under Gujarat Urja Vikas Nigam Ltd have been charging ₹3.35 as Fuel and Power Purchase Price Adjustment (FPPPA) charges for every unit of electricity consumed by the consumer. This has been reduced by 50 paise per unit to ₹2.85 for the January-March quarter.
“After Covid, the electricity costs have been constantly rising. Now with the international gas and coal prices cooling down, our purchase costs have also come down,” said an official of GUVNL that engages in bulk purchase and sale of power in Gujarat. The last cut in FPPPA was seen in October 2020 when it was reduced from ₹2 to ₹1.81 per unit.
This financial year, Gujarat government has already raised FPPPA charges twice from ₹2.85 per unit in March 2023 to ₹3.35 in July 2023. The charges were not hiked during the third quarter this year.
On Tuesday, Gujarat government issued a statement and said the cut in FPPPA for the final quarter will provide a ₹1,340 crore benefit to 1.7 crore electricity consumers in the State. ‘Residential consumers who consume 100 units of power monthly, will save ₹57 monthly,” the statement added.
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