Tripura State Electricity Corporation Limited (TSECL) has been formed and started operation from 1st January 2005. As per Electricity Act' 2003 TSECL is considered as a deemed Licensee who is responsible for generation, transmission and distribution of Power in Tripura. TSECL is mandated to get its tariff and annual revenue requirement (ARR) approved by TERC. Since its inception, TSECL has secured last tariff revision for 2005-06 and 2006-07 which resulted in constant tariff rates since 2006-07. However, increasing gas costs have increased power procurement costs for TSECL in two-fold ways: Adjusting fuel cost of their own generation as well procurement from central sector gas-based generating stations. In response to this, TSECL has claimed for an increase of Rs 2.09 per unit per consumer as Fuel and Power Purchase Cost Adjustment (FPPCA); however, TERC has granted only Rs 1.40 per unit per consumer w.e.f 1st September 2010.