Chandigarh power department to revise FPPCA charges

CHANDIGARH: Chandigarh electricity department is all set to revise fuel and power purchase cost adjustment (FPPCA) charges to be levied from the next quarter.

FPPCA charges are not levied in agricultural category, while domestic and commercial consumers have to pay these charges, which are revised every quarter.

The charge is the difference between per unit actual cost of power purchase and per unit approved cost of power purchase. FPPCA is a charge added on a per-unit basis to each power bill over and above the regular tariff. The UT electricity department generates bills for domestic customers bi-monthly.

Domestic consumers are divided into four groups of 50,000 each, and they pay bills in six cycles a year. Bills of commercial consumers are generated every month.

According to official records, there are 2.16 lakh electricity consumers, of which, 1.75 lakh fall in the domestic category. The department has regular billing of around 94% of consumers.

In the last quarter, electricity department had slashed the charges by 18%.

 Over the years, city residents have been objecting to the levy of FPPCA on grounds that the formula used to calculate it is complex. During a public hearing by Joint Electricity Regulatory Committee (JERC) in March, residents had demanded that FPPCA charges be replaced with a fixed surcharge. To address the problem, department has roped in NIELIT to develop a software for online calculation of FPPCA.

Joint Electricity Regulatory Commission (JERC) had recently turned down a proposed of the electricity department to hike power tariff.Unhappy with the decision of JERC rejecting its power tariff petition, the UT electricity department has challenged the order. The department has filed an appeal before the commission seeking funds to overcome its deficit. In a setback to the department, the commission had decided not to carry forward the revenue gap of Rs 208.17 crore in future years. The commission had ordered that the electricity department should approach the government to provide budgetary support to meet the revenue gap. Not only that, it also disallowed the cumulative revenue gap till 2013-14 amounting to Rs 33.74 crore.




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