In a major relief to electricity consumers in Gujarat, the state government announced on Tuesday to reduce the Fuel and Power Purchase Price Adjustment Charges (FPPPA) by 14 per cent.
The FPPPA or fuel surcharge, recovered for every unit of electricity consumed, has been reduced by 40 paise to ₹2.45 per unit. “This reduction will lead to an estimated ₹1120 crore relief for 1.75 consumers in the state,” said energy minister Kanu Desai. The minister in a statement said that for residential consumers who use 200 units of electricity every month, this cut in fuel surcharge will lead to a savings of ₹50-60.
This is the second time in calendar year 2024, the government has slashed the FPPPA charges. This reduction in fuel surcharge is applicable to all categories of consumers, except for those located in Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR. Torrent Power is the charge of electricity distribution in these areas.
During the October-December 2023 period the Gujarat government was recovering Rs 3.35 per unit as FPPPA charge from consumers. However, for the first time in the last three years, the Gujarat government in March 2024 — ahead of the Lok Sabha polls — announced a 15 per cent reduction in fuel surcharge. The FPPPA charges are applicable to all categories of consumers, expected agricultural consumers for whom the subsidy is borne by the state government.