The electricity regulator, Gujarat Electricity Regulatory Commission (GERC) on Wednesday allowed an average 2.47 per cent tariff hike for state-run distribution companies, (discoms) and an average 2.36 per cent for private sector player, Torrent Power Limited (TPL).

The tariff hike will put an additional burden of Rs 781 crore annually on the consumers of the four discoms, controlled by Gujarat Urja Vikas Nigam Limited (GUVNL) while TPL consumers will bear an additional burden of Rs 160 crore annually. TPL supplies power in Ahmedabad-Gandhinagar and Surat cities.

In its tariff order GERC allowed an overall increase of 13 paise per kilowatt hour (kWh) for the discom consumers except agriculture, below poverty line and those consuming electricity up to 200 units per month.

The overall increase in tariff for TPL consumers is 15 paise per unit. The new tariff is effective from April 1, 2015.

The four discoms, Uttar Gujarat Vij Company Ltd (UGVCL), Paschim Gujarat Vij Company Ltd (PGVCL), Madhya Gujarat Vij Company Ltd (MGVCL) and Dakshin Gujarat Vij Company Ltd (DGVCL) had sought the tariff hike of 17 paise per unit, against which the commission approved average hike of 13 paise per unit for all categories of consumers except agriculture, BPL and residential consuming upto 200 units per month. This will give additional revenue of Rs 781 crore to the discoms.

Similarly, TPL had asked for an average increase in tariff to the tune of 53 paise per unit for Ahmedabad and Surat area, but GERC approved an average hike of 15 paise per unit.

"The upward tariff revision was necessary considering the increase generation cost due to fuel price rise. The hike will not affect the BPL, agriculture and consumers using up to 200 units a month," the GERC chairman Pravinbhai Patel said.

Further, in order to encourage night time consumption, the Commission has reduced the demand charge of HTP-IV consumers from half to one-third of normal High-Tension (HT) consumers.

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