Gujarat cut electricity rates twice in 2024, provided ₹2,004 crore relief: Energy Minister
February 21, 2025
Gandhinagar: Electricity rates were reduced twice in 2024, providing a total average relief of ₹2,004 crore to electricity consumers in Gujarat, stated Energy Minister Kanubhai Desai in response to a question regarding the relief provided to consumers during the ongoing budget session of the state assembly.
Providing further details, the minister explained that the Electricity Regulatory Commission reviews the expenditure incurred on electricity generation in the state every three months and adjusts the fuel charge accordingly.
The minister highlighted that Gujarat is a national leader in renewable energy, particularly in solar and wind energy. Over the past three years, the state’s total renewable energy generation capacity has increased from 15,400 MW to 32,300 MW.
The Minister added that electricity rates have been reduced twice during the year 2024-25. With effect from January 1, 2024, the rate was reduced by 50 paise per unit, and with effect from July 1, 2024, the rate was further reduced by 40 paise per unit, resulting in a total average relief of ₹2,004 crore to electricity consumers in 2024. This reduction will be applicable to 1.5 crore electricity consumers in the state until the next review by the Electricity Regulatory Commission, the Minister added.
With this reduction, a total relief of ₹16.68 crore has been provided to 4,39,917 electricity consumers in Junagadh district during 2024, the Minister said.
Regarding the relief given to BPL cardholders on electricity bills, the Energy Minister stated that electricity rates for BPL cardholders are lower compared to other residential consumers. The fixed charge for residential consumers ranges from ₹15 to ₹70, while for BPL cardholders, it is only ₹5. Similarly, in rural areas, the charge for the first 50 units is ₹2.65 per unit, whereas, in urban areas, BPL cardholders are charged ₹1.50 per unit for the first 50 units, compared to ₹3.05 per unit for regular consumers.
Further, the Minister mentioned that there is a plan to renovate the cabling work in coastal areas under the Jyotigram Scheme, which has been allocated funds in the financial budget.
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