AHMEDABAD: The consumers of Gujarat Urja Vikas Nigam Limited (GUVNL) will have to shell out a little more for the electricity they use. The state-run power utility has increased the Fuel Price and Power Purchase Adjustment (FPPPA) or fuel surcharge by 10 paise per unit.
GUVNL has worked out a fuel surcharge of Rs 1.90 per unit for the April-June quarter of the current fiscal. It will be recovered from the consumers in the subsequent quarter of July-September, GUVNL said in a communication dated July 27.
The power company had levied fuel surcharge at the rate of Rs 1.80 per unit in April-June 2021. A power distribution company (discom) levies FPPPA or fuel surcharge on consumers to offset any variations in fuel (coal and gas) costs.
All the four power distribution companies affiliated to GUVNL have been asked to charge the fuel surcharge of Rs 1.90 per unit for the period from July to September 2021 till further communication.
This fuel surcharge will be levied on all categories of consumers, excluding agriculture consumers as the state government provides subsidy to discoms for the consumption of electricity in the agriculture sector.
“The increase in the fuel surcharge will put a burden of Rs 88 crore per month on consumers of GUVNL,” said K K Bajaj, a city-based energy and regulatory expert.
“The cheaper power procured through wind energy projects, energy exchanges and short-term power purchase agreement (PPA) helped GUVNL reduce the cost of power,” Bajaj said. “Otherwise, the fuel surcharge had gone above Rs 2.50 per unit.”
