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Web Exclusive | January 2018

Cut in incentives will hike industrial power tariff by 30%

Maharashtra State Electricity Distribution Company Limited (MSEDCL) is seeking 30% hike in industrial power tariff. While the discom had not proposed to increase the industrial energy charges, it wanted to strike off various incentives which would lead to a sharp increase in the tariff for factories, according to Atul Pande, President of Vidarbha Industries Association (VIA). "This is a mid-term review petition and the entire tariff philosophy can't be changed through this. The petition is completely illegal," he said."Currently, you get load factor incentive if it is more than 75%. The incentive is capped at 15%. MSEDCL wants to provide incentive if the load factor is only above  85% and cap it at 7%. This is disastrous for industries as the incentive helps keep the effective tariff low," Pande further said. MSEDCL wants to increase the time of the day (TOD) tariff. "It has sought a hike of 80 paise per unit between 12 noon and 6pm and 15 paise per unit between 9 am and 12 noon," the VIA chief added. The discom wants to bill the industries on KVAh basis instead of the existing kWh system.
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