Consumers of the Bangalore Electricity Supply Company (Bescom) can start their year with a pleasant surprise as there will be a reduction of 37 paise per unit in the electricity bills of the January billing cycle. This is a result of Fuel and Power Purchase Cost Adjustment (FPPCA) charges figuring in the negative across all electricity supply companies (escoms).
In an order passed on December 29, the Karnataka Electricity Regulatory Commission (KERC) approved the FPPCA charges of –37 paise based on the variations in the fuel and power purchase costs in the month of November for all categories of Bescom consumers. For consumers who use 100 units, the reduction would be up to ₹3.7 on their bill.
Although the FPPCA had fallen into negative twice before in the ongoing Financial Year 2023-24, (-9 paise and -6 paise), the arrears of FPPCA from the previous months had not let it reflect as a reduction in the bills. According to sources in Bescom, a difference of ₹150 crore has been found between the power purchase cost approved by the KERC to buy from Uttar Pradesh Power Corporation Limited (UPPCL) and the actual power purchase cost, which has resulted in the reduction in FPPCA.
There was also a reduction in the money spent on coal procurement. “The main reason for the FPPCA to fall into negative in November was the cost of coal in international market,” said Darshan. J, Director of Finance, Bescom. He also said that there is no certainty about the fall continuing in the next month as the FPPCA is usually based on the dynamics of the market.
Apart from Bescom, the KERC has approved FPPCA charges of -31 per unit for Mescom, -3 paise for Hescom, -51 paise for Gescom, and -39 paise for CESC, for the same billing cycle.
