GERC Approves FSLC Methodology For HT Consumers Up To 1 MW In Ahmedabad, Gandhinagar, And Surat In Gujarat

Torrent Power Limited (TPL) had filed a petition with the Gujarat Electricity Regulatory Commission (GERC) seeking approval for the methodology to implement a Fixed Service Line Charge (FSLC) for High Tension (HT) consumers with contract demand up to 1 MW/MVA in the Ahmedabad, Gandhinagar, and Surat license areas. This petition was filed under the amended GERC (Power to Recover Expenditure) Regulations, 2005, following an amendment notified on 26 June 2020 that allows recovery of new connection and load extension costs at the HT level on a per kW or kVA basis.

TPL proposed to recover these charges based on a pre-approved methodology instead of preparing detailed estimates for each application. The FSLC would apply only to new HT connections or load enhancements up to 1 MW. Applications beyond this limit, or for shifting, reduction, and removal of services, would continue on an actual cost basis.

TPL submitted a structured methodology that included cost components such as cables, joints, road opening charges, switchgear, metering cubicle, and enhancement charges. The average FSLC was initially worked out at ₹3,800 per kW. The cost of switchgear was ₹5,08,874, and the metering cubicle cost was ₹1,11,976. TPL later updated the FSLC based on the latest cost data, which increased the rate to ₹7,165 per kW, switchgear cost to ₹7,02,632, and metering cubicle cost to ₹1,52,639.

TPL included a detailed cost analysis using real data from past connection requests, considering average sanctioned load, cable lengths, and infrastructure costs. The enhancement charges alone amounted to ₹5,471.63 per kW, while road opening charges averaged ₹1,145 per meter. TPL clarified that railway and highway crossing charges would be recovered separately on an actual basis.

During the public consultation process, as directed by the Commission, no objections or suggestions were received initially. However, later, the Users Welfare Association (UWA) raised concerns. They pointed out that TPL had earlier shown enhancement charges of ₹2,258 per kW, but currently charged consumers only ₹1,700 per kW. UWA also objected to the full cost recovery of RMUs (Ring Main Units), suggesting that the switchgear costs should be apportioned since the RMUs serve TPL’s network as well. UWA suggested charging only ₹2,50,000 towards the switchgear instead of ₹7,05,000.

After considering the methodology and stakeholder submissions, the Commission approved the proposed FSLC methodology and finalized the following rates: ₹7,000 per kW for new connections and load extensions, ₹7,00,000 for switchgear (applicable only for new connections), and ₹1,50,000 for the metering cubicle. These charges will apply to HT consumers up to 1 MW/MVA, effective from the date of the order, 1 July 2025.

The Commission clarified that estimates already issued would not be affected, and that for connections above 1 MW, costs would be based on actuals. Any future revisions must follow the approved methodology and be submitted to the Commission for approval. TPL is also required to submit its updated cost data book regularly. With this, the petition stands disposed of.