The additional burden will be imposed as Fuel and Power Purchase Price Adjustment (FPPA) charges, which is currently 76 paise per unit. The effective FPPA to be charged for the coming three months will by Rs 1.03 per unit.
The Assam Power Distribution Company Limited (APDCL) had wanted a hike of 36 paise per unit in FPPA, which was discarded by Assam Electricity Regulatory Commission (AERC) and settled at 27 paise per unit. The hike will acquire additional revenue of Rs 111.24 cr for the company.
Power Minister Pradyut Bordoloi elucidated that the hike has not been imposed by the state government but by the AERC. “The hike has been necessitated as a fuel surcharge following fluctuation in fuel price and the rate of power purchase. The calculation is done on a multi-year basis.”
The AERC on September 26 passed the order allows the hike, after the Assam Power Distribution Company Limited (APDCL) filed a petition on June 27 seeking approval of recovery of FPPA for the period from October 1, 2011 to December 31, 2011, charged to its consumers with effect from February 1 to April 30, 2012. The APDCL had proposed an FPPA charge of Rs 1.12 per unit at that time.