There is good news for 65 lakh electricity consumers of Chhattisgarh. The electricity bill received in July will remain in Fuel Power Purchase Adjustment Surcharge (FPPAS) Minus, which will provide some relief to consumers. However, this relief is temporary as new tariff rates are going to be implemented soon, due to which the power prices are fixed.
Why FPPAS fee reduced?
Till now, additional fees were charged in the name of FPPAS every month from electricity consumers (CG). But due to the fall in power generation cost in June, this fee has increased to -7.32%. Earlier in April 2024 also the FPPAS fee was zero for the first time.
The major reason behind this deficiency is the cost of electricity purchased from the NTPC Lara plant. In the last six months, a difference of Rs 1500 crore was recovered from consumers through FPPAS. Now this difference has been completely recovered, due to which FPPAS has gone to minus in June electricity bill. Consumers will get direct benefit of this and the electricity bills coming in July will be slightly light.
CG: New tariff rates can make electricity expensive
However, this happiness of consumers (CG) is not going to last long. Chhattisgarh State Power Company (CSPC) has sent a proposal to increase power tariffs for the year 2025-26 to the Regulatory Commission. According to the power company, in the current financial year it will sell electricity worth about Rs 24,652 crore while the total expenditure will be Rs 23,082 crore. In such a situation, the profit of Rs 1570 crore is estimated.
But the problem is that in the last financial year 2023-24, the company had a huge loss of Rs 6130 crore. In such a situation, there is still a total difference of Rs 4560 crore, which has been demanded to increase the electricity rates to complete. This proposal is now under consideration with the Electricity Regulatory Commission and a final decision will be taken soon.
CG: New rates will increase the burden on consumers
As soon as the new tariff (CG) rates are applied, consumers will have to pay increased prices of electricity. It is clear that the tariff is sure to increase in 2025-26, although how much weight will be loaded on which class consumers will depend on the Commission’s decision.
At the moment, there will be some relief due to the FPPAS minus in the July electricity bill, but electricity is almost certain to be expensive in the long term.
