Home >companies >news >Torrent Power slashes Re1 per unit for power consumers in three cities

Ahmedabad: Torrent Power Ltd on Monday reduced tariffs in Ahmedabad, Gandhinagar and Surat by 1 per unit, attributing the move to lower fuel and purchase rate adjustment (FPPPA) charge.

The FPPPA charge varies from quarter to quarter, under a formula approved by the state electricity regulator Gujarat Electricity Regulatory Commission (GERC).

“This is perhaps the steepest electricity tariff cut in the state. The Gujarat government has been proactive and has made concrete efforts to ensure that the benefits of falling prices are passed on to the consumers," a senior Gujarat minister said, requesting anonymity.

A Torrent Power official said, on condition of anonymity, that the company’s fuel and procurement costs have come down. Earlier, the company had to buy costly LNG from abroad and even source power from other companies. Cheaper LNG has, however, changed the scenario, and its medium and long term contracts in the recent past have made it reach at a stage where it can pass on the benefits, the company official quoted above said.

“In April this year, Torrent Power reduced the FPPPA charges by 58 paise and now in July quarter it has reduced by 80 paise," a government official aware of the developments said.

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