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News Brief | January 2011

Power tariffs in Maharashtra on an upward swing

Power tariffs across all categories has gone up in Maharashtra. The regulator has approved an additional revenue of Rs 1,136 crore for MSEDCL, resulting in an overall five per cent increase in tariffs across all categories of consumers. The additional charge was made effective from 1 December, Maharashtra Electricity Regulatory Commission (MERC). In September, MERC had allowed a tariff hike of three per cent for Maharashtra State Electricity Distribution Company (MSEDCL) by approving a revenue of Rs 909 crore for 2010-11. MERC, while approving the additional charges, said an error had occurred in calculating the revenue from the various categories of consumers.

A MSEDCL official said, "MERC realised the hike sanctioned by it in August was not sufficient for MSEDCL. The tariff has gone up mainly as MERC had included a refund of regulatory liability charge (RLC) and additional supply charge (ASC) in 2009-10 as revenue instead of expense. This led to a loss of Rs 1,092 crore for MSEDCL. MERC has now allowed MSEDCL to recover this amount."

Domestic consumers with consumption up to 30 units per month will have to pay four paise more per unit, 14 paise more per unit for up to 100 units, 24 paise more up to 300 units, 34 paise more (consuming between 300 and 500 units) and 40 paise more for those consuming between 500 and 1,000 units. Industrial consumers will have to pay 26-33 paise more per unit and commercial consumers will have to pay 24-46 paise more per unit for power usage.
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