The Gujarat Government has followed the footsteps of the Rajasthan and Delhi State Governments by increasing electricity tariff.
Rajasthan had increased electricty tariff by 20% in April 2011 followed by an increase of 22% by the Delhi State Government.
GERC- Gujarat Electricity Regulatory Commission has been more moderate with an increase of ~4% in electricity tariff.
Meanwhile, it looks we will see another hike in diesel prices soon enough. Per unit (kWh) price of electricity from diesel is anywhere between Rs.13-Rs.16, depending on location and various other factors. With this hike, accompanied with rise in petrol prices the industry will see a bigger rise in price of electricity generation using diesel.
From the REC perspective, it will be interesting to see what effect these tariff will have on the APPC.
On the other hand, Solar industry has been comparing solar costs with diesel and now with diesel price hike, the market may see more push on solar off-grid.