Home Coal Update Gujarat: GUNVL increases fuel surcharge, power to cost more for consumers

Gujarat: GUNVL increases fuel surcharge, power to cost more for consumers

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Gujrat, August 1: Gujarat Urja Vikas Nigam Limited (GUVNL) directed its four discoms to levy a fuel surcharge of Rs 2 per unit from all categories of consumers, except for the agricultural, for the July-September, 2020 quarter as against Rs 1.9 per unit in April-June quarter. Its consumers will have to pay more for electricity as it has increased its fuel price and power purchase adjustment (FPPPA) charge or fuel surcharge.

It doesn’t require the approval from Gujarat Electricity Regulatory Commission (GERC) to increase fuel surcharge up to 10 paise/unit. Hence, it has already asked discoms to charge Rs 2/unit FPPPA for July-September. GUVNL has worked out a fuel surcharge raise of 12 paisa per unit, which is to be recovered from July.

GERCs approval will be sought for the remaining 2 paisa, and if approved by the regulator, it will be levied from the quarter starting October 2020. A power distribution (discom) collects FPPPA or fuel surcharge from consumers to offset increases or decreases in fuel (coal and gas) cost.

Except for Ahmedabad, Gandhinagar and Surat, GUNVL supplies electricity to most cities of the state.

As per sources, the already effected increase of 10 paise/unit is estimated to translate into a combined burden of Rs 213 crore on more than 1 crore customers in the months of July, August and September. GUVNL had reduced the fuel surcharge for the April-June period by 16 paisa per unit.