The Gujarat Electricity Regulatory Commission (GERC) has issued a new tariff order for Uttar Gujarat Vij Company Limited on March 25, 2026, bringing key updates for power consumers and the utility in North Gujarat. The order completes the truing up for the financial year 2024-25 and sets the revenue requirement and tariffs for 2026-27.
As part of the truing-up process, the Commission reviewed the actual performance of UGVCL against earlier estimates. The utility recorded energy sales of 29,877.19 million units, slightly higher than the approved 29,585.00 million units. This increase was mainly driven by higher demand from low-tension consumers. At the same time, the total power purchase cost stood at ₹16,527.82 crore, which was lower than the earlier approved ₹17,655.11 crore, giving some financial relief.
However, not all costs remained under control. Operation and maintenance expenses increased to ₹1,128.20 crore compared to the approved ₹925.76 crore. The rise was mainly due to higher employee costs and additional spending on smart metering under the Revamped Distribution Sector Scheme. These factors added pressure on the utility’s overall expenditure.
For the upcoming financial year 2026-27, GERC has approved an Aggregate Revenue Requirement of ₹20,725.55 crore for UGVCL. This includes expenses related to power purchase, depreciation, and interest. Despite the higher cost base, the Commission has estimated a revenue surplus of around ₹906 crore. This surplus comes after considering expected income from tariffs, fuel surcharge adjustments, and government subsidies.
The tariff order also introduces new consumer-focused measures. A green tariff option has been launched to support consumers who want to use renewable energy. In addition, the utility will offer a Time of Use discount for consumers using smart prepaid meters. This step is aimed at encouraging people to shift their electricity use to daytime hours when solar power is more available.
The Commission has continued special tariffs for electric vehicle charging stations. These stations will pay a demand charge of ₹25 per kVA per month and an energy charge of 400 paise per unit. There will also be an extra Time of Use charge of 45 paise per unit during peak hours in the morning and evening.
GERC has kept the base fuel and power purchase adjustment charge at ₹2.45 per unit for all state DISCOMs. This decision is meant to pass the benefit of the surplus to consumers. Overall, the order tries to balance the financial health of the utility while keeping tariffs reasonable for consumers.
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