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Friday, September 11, 1998

FAC responsible for rise in bills

EXPRESS NEWS SERVICE  
AHMEDABAD, Sept 10: When people of the city are baffled over soaring electricity bills, the AEC authorities claim that it is the increase in consumption along with fluctuations in the Fuel Adjustment Cost (FAC) which is not within the purview of the company, that are responsible for the increase.

AEC vice-president Murli Rangnathan said the increase in bills was not because tariffs were revised, but because electricity consumption has been increasing. He said that with increasing consumption, the slabs also changed which increase the bills.

He said the overall consumption had also increased compared to that of last year. In April last year, the consumption was only 501 mega watts (MG) which increased to 582 MG. In May also this was 629.2 MG against 534.3 MG last year, in June it was 633.5 MG (573.9 MG last year) and in July it was 594.4 MG (557.9 MG last year).

Murlitharan said that the FAC which depends on fluctuations in the coal, oil, gas and railway freight is beyond the control of the company. Defending the company, he said tariff in residential areas was lowest in the State.

Sources said electricity duty was the highest in the country. The government has levied 40 per cent electricity duty for domestic consumption and 60 per cent for commercial users. This, he said was probably only seven per cent of that in Mumbai.

Besides, sources said other components which increase or decrease bills were the sales tax and other miscellaneous taxes.

The major factor for such high bills was FAC, which was revised every month and the effect was accordingly felt by the consumers. The Government of India determine the standard rate of the FAC. The bi-monthly FAC in domestic consumption was 153.65 paise per unit in April, in May it was 156.40 paise in June it was 155.40 paise and in July it is likely to decrease. Sources said the FAC was more compared to the Gujarat Electricity Board.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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