In a significant move to ease the financial burden on electricity consumers in Gujarat, the state government announced on Tuesday a 14 percent reduction in the Fuel and Power Purchase Price Adjustment Charges (FPPPA). This fuel surcharge, which is applied for each unit of electricity consumed, will decrease by 40 paise, bringing it down to ₹2.45 per unit.
According to Energy Minister Kanu Desai, this adjustment is expected to provide approximately ₹1120 crore in relief to around 1.75 crore consumers throughout the state. He further noted that residential users who consume around 200 units of electricity per month could save between ₹50 and ₹60 due to this reduction in the fuel surcharge.
This is the second reduction in FPPPA charges in 2024, reflecting the government’s ongoing efforts to manage electricity costs. It’s important to mention that this decrease applies to all consumer categories, with the exception of those in Ahmedabad, Gandhinagar, Surat, Dahej SEZ, and Dholera SIR, as Torrent Power is responsible for electricity distribution in these areas.
Previously, during the October-December 2023 quarter, consumers were charged ₹3.35 per unit for FPPPA. Notably, in a rare move over the last three years, the Gujarat government announced a 15 percent reduction in the fuel surcharge earlier in March 2024, just before the Lok Sabha elections. FPPPA charges are generally applicable to all consumer categories, except for agricultural users, for whom the state government covers the subsidy.
