Demand to increase electricity rate by 49 paise per unit on fuel cost in Bihar rejected, know what the regulatory commission said


The Bihar Electricity Regulatory Commission has rejected the proposal of the power company to increase the electricity rate by 49 paise per unit in the name of Fuel and Power Purchase Cost Adjustment (FPPCA) charges. The holding company had filed a petition in the commission regarding this, on which the decision was given by the commission’s chairman Shishir Sinha and member SC Chaurasia’s bench after hearing all the stakeholders. In the hearing, the commission admitted that there was a mistake in calculating the FPPCA fee from the company.

The difference can be less than 10 paise per unit.

The commission said that the company has claimed to charge an average of 49 paise per unit more than the fixed rate in the purchase of electricity in the first six months of the financial year 2022-23. According to the petitioner, in the half year ending September 2022, a total of 23629.60 MU electricity was purchased from various sources at an average rate of Rs 5.19 per unit. But after calculating the accepted 15 percent power distribution loss, 2.47 percent central transmission loss and fixed power purchase rate of Rs 5.12 per unit, the power purchase rate does not exceed 10 paise per unit. As per the rules, FPPCA can be charged only if the per unit amount exceeds 10 paise per unit per month. Therefore, the Commission does not consider it appropriate to pass an order permitting the levy of FPPCA fee cumulatively.

Claim in the name of increasing energy charges

In fact, power companies enter into long-term power purchase agreements (PPAs) with power generating units. The power company had claimed that in the first half of the last financial year, it got power from these units at a higher rate than the PPA. Behind the increase in duty, it was said that the rate of fuel i.e. coal would increase. Figures were also presented in its favor.

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