Torrent Power : GERC Issues Traffi Order for Torent Power Limited More...

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GERC Issues Tariff Orders for Torrent Power Limited

Reduction in price per unit through cap on FPPPA;lntroduction of Regulatory Charge

April 4,2016

The Hon'ble Gujarat Electricity Regulatory Commission ("GERC") on 31st March 2016 issued Tariff Orders for Ahmedabad Generation,Ahmedabad Distribution and Surat Distribution businesses of Torrent Power Limited (TPL) for truing-up of its financials for FY 2014-15 and determination oftariff for FY 2016-17. The highlights of the Order, effective 1st April2016, are asfollows:

• No increase inregular tariffs of Ahmedabad, Gandhinagar and Surat area consumers for FY 2016-17

• "Regulatory Charge"@ 45 Paise/unit during FY 2016-17 for recovery of past period Gaps has been approved and introduced

• The FPPPA charge recovery is capped at Rs.1.35/Unit againstpresent FPPPA of Rs.1.98/unit (63 paise reduction) on account of recent reduction of global fuel prices

• Effective reduction of 18 Paise/unit in all categories of consumers ofTPL License Areas

• Hon'ble GERC commended TPL for achievinglower distribution lossesat4.09% inSurat area and 7.34% in Ahmedabad-Gandhi nagar area for the FY 2014-15.

Cappingof FPPPA -A Step inthe Right Direction

The Commission has endeavoured to reduce the electricity bill of consumers by 63 Paise/unit by capping the recovery ofFPPPA during FY 2016-17 at Rs.1.35/unit comparedto the present FPPPA of Rs.1.98/unit.This is on account of a reduction in global LNG and coal prices, and also the subsequent renegotiation of IOC's R-LNG contract with RasGas.

Introduction of RegulatoryCharge

While ensuring no increase in regular tariff for consumers of TPL's License Areas, a "Regulatory Charge" component has been introduced atthe rate of 45 paisa per unit as part of the newtariff structure for recovery of past net revenue gap of Rs. 470 crores. Introducing such a mechanism is an established practice in power distribution that enables recovery of past dues in an affordable manner for the consumers. This Chargewill stop once the approved gap is recovered infull,which is likely to be by31st March 2017.

Thus,there isan effective reduction of18 paisa inprice per unitfor FY2016-17.

In summary,the tariff order emphasizes a clear motive of primarily serving consumer interest while also allowingrelief to the utility.

The said Orders are available on the websites of Hon'ble GERC - www.gercin.org and TPL's Customer Portal - connect.torrentpower.com

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Registered Office: Torrent House, Off Ashram Road, Ahmedabad- 380 009 Phone: [phone] Fax: [phone] CIN: L31200GJ2004PLC044068

Website: www.torrentpower.com; E-mail: [e-mail]

About Torrent Power Limited:

Torrent Power Limited is an integrated power utility of the Torrent Group, havinga group turnover of approx. Rs. 16,000 Crores. Torrent Power is one of the largest private sector players in the country present in power generation, transmission and distribution. Its current installed generation capacity is -3250MW and it

distributes nearly 14.01 billion units to over 2.95 million customers in the cities of Ahmedabad,Gandhinagar, Surat and Dahej SEZ inGujarat, Bhiwandi in Maharashtra and Agra inUttar Pradesh.

Torrent Power Limited, in its licensed areas in Gujarat hasthe distinction of havingone of the lowest T&D losses in the country and very high network reliability.Torrent Power Limited is also in the business of manufacturing and supply of cables.

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Registered Office: Torrent House, Off Ashram Road, Ahmedabad- 380 009 Phone: [phone] Fax: [phone] CIN: L31200GJ2004PLC044068

Website: www.torrentpower.com; E-mail: [e-mail]