Torrent Power Reduces FPPPA Charge By Rs 1.18 Per Unit
The announcement follows the reduction in FPPPA to Rs 1.30 per unit already effected by Torrent in the first quarter of the current fiscal
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Torrent Power, private sector power player, has been reduced its FPPPA charge (Fuel and Power Purchase Rate Adjustment), a component of its effective tariff, from Rs 1.98 per unit to Rs 0.80 per unit for its consumers in Ahmedabad, Gandhinagar and Surat.
This announcement follows the reduction in FPPPA to Rs 1.30 per unit already effected by Torrent in the first quarter of the current fiscal, company said.
The FPPPA charge varies from quarter to quarter, in accordance with a formula approved by the GERC, on account of variations in actual cost of power procurement (which in turn is greatly dependent on the cost of coal and gas in the Domestic and International markets) and volume. Torrent makes all efforts to optimise the cost while always according equal priority to maintaining the highest standards of reliability and quality of power.
A separate Regulatory Charge of Rs 0.18 per unit in case of Ahmedabad and Gandhinagar and Rs 0.17 per unit in case of Surat to recover Torrent’s past approved under-recoveries is effective since 1st July 2016, which was not applicable in the Previous Year. Even after accounting for the Regulatory Charge, all categories of consumers in Ahmedabad, Gandhinagar and Surat will on a net basis save Rs 1 per unit as compared to Previous Year on account of the reduced FPPPA charge.
As per press statement, If applied on a typical residential consumer’s bill, this saving of Rs 1 per unit translates to a significant reduction of approx 17 per cent in the effective tariff for such residential consumer.