Power tariff to go up marginally to offset higher fuel costs: CM | Guwahati News


Power tariff to go up marginally to offset higher fuel costs: CM

Guwahati: CM Himanta Biswa Sarma on Tuesday dismissed reports of a sharp rise in power tariffs, saying only a temporary 4–5 paise per unit increase will be imposed to offset higher global fuel costs linked to the West Asia conflict.He added that the revised charge, effective from Nov, will be withdrawn once the prices stabilise.Himanta said the rise in crude oil and diesel prices has pushed up the cost of purchasing electricity from external sources. Referring to the prevailing geopolitical situation in West Asia, he added that the crude oil prices had touched around $115 per barrel until Tuesday, adding to the cost pressures faced by power utilities.The CM said electricity was not available to power utilities free of cost and even power generation involved expenditure on fuel.“If the conflict subsides, the additional charge will be withdrawn immediately. This is purely a temporary measure and not a permanent increase in electricity tariffs,” he said.On Oct 28, Assam Electricity Regulatory Commission (AERC) heard a petition filed by the Assam Power Distribution Company Limited (APDCL) regarding allowing the company staggered recovery of accumulated fuel and power purchase price adjustment surcharge (FPPPAS) pertaining to financial year 2026-27.An increase or decrease of FPPPA charge on electricity depends on the prices of gas and coal, which are required for electricity generation.In its petition to the AERC, APDCL said during FY 2026-27, variations in power purchase costs had resulted in accumulation of FPPPAS for five months from April to Aug, amounting to approximately Rs 156.00 crore, excluding supplementary bills, and that the accumulated amount was required to be recovered in accordance with the regulatory framework.The company said it had formulated a five-month staggered recovery schedule from Nov this year to March next year. The petition proposed recovery of approximately Rs 155.59 crore through this schedule, with an FPPPAS rate of 3.81% per month for full recovery. The projected month-wise recovery was Rs 40.07 crore in Nov, Rs 30.95 crore in Dec, Rs 28.97 crore in Jan next year, Rs 29.36 crore in Feb next year and Rs 26.23 crore in March.APDCL submitted that to mitigate the impact on low-end domestic consumers and provide relief to financially weaker categories, it proposed recovery at a reduced rate of Rs 0.05 per kilowatt from consumers under the Jeevan Dhara category and the Domestic-A category consuming up to 120 units, while recovering the computed rates from other consumer categories.After hearing the petition, instead of approving the specific month-wise tariff levy schedule proposed by APDCL, the AERC considered it appropriate to allow APDCL flexibility in determining the month-wise levy of the accumulated FPPPAS, with a view to facilitating recovery of the said amount within FY 2026–27.“While exercising this flexibility, APDCL shall have due regard to the impact of the levy on consumers and shall ensure that the accumulated FPPPAS is clearly distinguished from the regular monthly FPPPAS becoming due during the same period,” the commissioner said.However, the flexibility permitted under the order by the commission shall be confined to the timing and month-wise manner of recovery of the accumulated FPPPAs pertaining to April 2026 to Aug 2026.“The computation and recovery of FPPPAs for subsequent periods shall continue to be governed by the formula, methodology and timelines prescribed under the Regulations, unless otherwise specifically relaxed by the commission,” the commission stated in the order.



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