Dear Colleagues, Feedback has been received from many of our industry colleagues that they have received exorbitant electricity bills from DNHPDCL (Dadra and Nagar Haveli Power Distribution Company Limited) for October 2016. On examining this bill, it is evident that in the previous quarter bill, DNHPDCL charged ₹0.67 per unit as FPPCA (Fuel and Power Purchase Cost Adjustment) charges, but in the October 2016 bill, DNHPDCL has increased this charge to ₹1.30 per unit, without any proper explanation or reason. This exorbitant charge hike has put the industries in a severe financial crisis, and now the survival of MSME (Micro, Small and Medium Enterprises) units in Dadra and Nagar Haveli is at stake.
This is the time when we have to unite and protest against this issue, because if we do not stand up now, the MSME units will shut down. The benefit of low electricity prices that these industries were getting till now will be completely lost, and MSME units will be unable to compete at the national and international level.
Protest plan and steps
After consultation with other associations and industry associations on this issue, it has been decided that the entire industrial sector should come together and protest against this excessive electricity tariff hike. The Federation of Industry Associations has discussed the subject with legal advisors so that the levy of this excessive tariff can be challenged at the appropriate legal forum. Along with this, the representatives of the industry associations met the Managing Director of DNHPDCL and requested him to share the formula used for FPPCA tariff determination with the industry representatives to ensure that the FPPCA calculations are correct and DNHPDCL has not added any other component in the calculations.
Call for solidarity amid growing crisis for MSMEs
All three associations and the Federation of Industry Associations have started a struggle against the biased and unjust policy of DNHPDCL on this issue. In the meantime, all fellow industries are requested not to pay the electricity bill of October 2016 in a hurry and if any fellow industry has already paid then please make the payment ‘under protest’, while also retaining the right to recover the additional amount from DNHPDCL which has been recovered extra as FPPCA charges.
Rights and importance of solidarity
All industries are informed to also update their neighbouring industries on this issue and ensure that all industries in Dadra and Nagar Haveli are aware of this excessive electricity charge recovery. This will strengthen solidarity and collective struggle among the industries. We have to ensure that a strong voice is raised against this excessive charge hike.
Conclusion
The increase in FPPCA fees by DNHPDCL in the last few months has crippled / paralyzed industries (especially MSMEs) in Dadra and Nagar Haveli. The hike in the charges is not justified, and it puts at stake the existence of these businesses, and that’s why all industries have to unite and protest. Legal action and transparency in the calculation of charges are significant measures to safeguard the interests of the industrial sector. Teamwork is the only way in which this unfair weight can be fought and overturned to ensure that the sustainability of MSMEs in the area is achieved.
FAQs
Q1. What is the FPPCA charge in electricity bills?
A1. FPPCA stands for Fuel and Power Purchase Cost Adjustment. It is a charge added to electricity bills to account for the fluctuating costs of fuel and power purchased by the electricity distribution company.
Q2. Why did DNHPDCL increase the FPPCA charge in October 2016?
A2. DNHPDCL increased the FPPCA charge from Rs. 0.67 per unit to Rs. 1.30 per unit in October 2016 without providing proper justification or explanation for the hike, causing concern among industries.
Q3. How are the industries responding to the increased FPPCA charges?
A3. Industrial associations and MSME representatives are protesting the excessive hike in power charges and have engaged legal consultants to challenge the unjust recovery of power charges.
Q4. Should industries pay the electricity bill for October 2016 immediately?
A4. No, industries are advised not to hasten in paying the October 2016 bill. If payment is made, it should be done under protest to retain the right to recover the excess charges.
Q5. How can the issue of excessive FPPCA charges be resolved?
A5. The issue can be resolved through legal actions, industry protests, and by ensuring transparency in the FPPCA calculation by DNHPDCL, involving industry representatives in the process.