Gujarat Slashes Electricity Rates Twice in 2024

Gandhinagar : Energy Minister Kanubhai Desai announced that the state experienced two reductions in electricity rates throughout 2024, leading to an overall average relief of Rs. 2004 crore.

Desai addressed a question about the reduction in electricity tariffs for consumers in the state during the current budget session of the state assembly on Tuesday.

The Energy Minister provided insights on the process, explaining that the Gujarat Electricity Regulatory Commission assesses the expenses related to electricity generation in the state quarterly and determines the fuel charge based on those calculations.

The Minister highlighted that Gujarat leads the nation in the renewable energy sector, particularly in solar and wind energy.  Over the past three years, the state’s renewable energy generation capacity has surged from 15,400 MW to an impressive 32,924 MW.

Desai announced that the nation aims to produce 500 GW of electricity from renewable energy sources in pursuit of zero carbon emissions by 2070.  Gujarat has established an ambitious goal of producing 100 GW of renewable electricity.

The Minister announced that there have been two reductions in electricity tariffs during the year 2024-25.  Starting January 1, 2024, there will be a reduction of 50 paise per unit, followed by a decrease of 40 paise from October 1, 2024. This amounts to an overall average relief of Rs. 2004 crore for electricity consumers throughout the year 2024.  The decrease will affect 1.50 crore electricity consumers in the state until the upcoming assessment by the Electricity Regulatory Commission.

The reduction will provide a total relief of Rs. 189.54 crore to 3,02,410 electricity consumers in the Morbi district.  In the Patan district, it has been reported that 4,12,193 electricity consumers received a relief amounting to Rs. 21.65 crore in the year 2024, according to the Minister.

The Energy Minister announced that BPL card holders benefit from reduced electricity rates, which are more favorable than those for consumers in other residential areas.  The fixed charge for consumers in residential areas ranges from Rs. 15 to 70, whereas BPL card holders are charged a fixed fee of Rs. 5.  In rural regions, the cost for the initial 50 units stands at Rs. 2.65, whereas in urban settings, BPL card holders pay Rs. 1.50 for the first 50 units, in contrast to Rs. 3.05 for the same amount, he noted.