Gujarat Urja Vikas Nigam Ltd’s (GUVNL) average purchase price per unit of electricity from private power companies for the quarters of April, May, and June decreased to ₹5.85 from ₹ 6.04. 

As a result, 1.65 cr electricity consumers in Gujarat will get a relief of 19 paise per unit in electricity tariffs under the fuel price and power purchase agreement (FPPPA). 

In this quarter as well, 46.70 cr units of electricity have been supplied at a rate of ₹4.45 by Adani Power. Moreover, under the FPPPA, a discount of 25 paise has been given. The relief, however, seems short lived.

Potential price hikes in electricity bill

Since the charges have yet to be collected for the previous quarter’s FPPPA, the possibility of a price drop is slim. Instead, 25 paisa per unit will be added for the collection of the old FPPPA, making the electricity expensive. 

Gujarat Electricity Regulatory Commission (GERC) has increased the limit on the FPPPA rate by 25 paisa per unit to 3.62 per unit in July, August, and September’s electricity bills.

The consumers will pay regular slab charges in addition to charges decided by private companies and charges against the cost of generating electricity by government power plants.

More about the previous quarter

During the second quarter this year, the production of electricity from wind power and solar energy increased in Gujarat, and the purchase of external power has also been limited. This led to a decrease in rates in that quarter.

During April, May, and June, 479.70 cr units of electricity were generated from solar energy and wind energy.

About 15.2% of the electricity purchased was generated from solar and wind energy. As a result, only 3154.30 cr units of electricity were purchased in the quarter. Due to the considerable wind speed in the region, more electricity was generated in Saurashtra. 

Earlier, GUVNL ordered the Gujarat State Electricity Corporation Ltd (GSECL) to stop the production of electricity at multiple plants in the state as demand decreased after a few rounds of heavy rain.

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