Discoms Decide Not to Increase Power Tariffs for 2021-22

Discoms Decide Not to Increase Power Tariffs for 2021-22

Gujarat Industry Review Team

Electricity tariffs will not be increased for the financial year 2021-22 as power distribution companies affiliated with state-run Gujarat Urja Vikas Nigam Ltd (GUVNL) have decided not to change the tariffs. While Torrent Power Limited has proposed not to change retail tariffs, the private sector company has instead sought to levy regulatory charge for a certain period to cover its past under-recoveries.

The four discoms affiliated with GUVNL and TPL have filed petitions with the Gujarat Electricity Regulatory Commission (GERC) for determination of power tariffs for the next financial year. According to TPL tariff petitions, the company has proposed to levy regulatory charge of 19 paisa per unit from its consumers in Ahmedabad and Gandhinagar supply areas for two years. For Surat supply area, TPL has sought to collect regulatory charge of 9 paisa per unit during 2021-22.   

“TPL has not proposed any increase in tariff and has proposed to recover the cumulative revenue gap (mainly arising from past under-recoveries) by way of time-bound regulatory charge,” the company stated in its tariff petitions.

Stating that TPL’s power tariffs were last increased in 2015-16, the company further added, “Since then, despite the overall inflationary pressures, TPL has been managing its costs largely through operational efficiencies. Even for FY 2021-22, TPL is not requesting a permanent increase in tariff and is proposing to recover the past-period under recoveries through a regulatory charge.”   

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