State power utility wants 35 per cent tariff hike | india | Hindustan Times
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State power utility wants 35 per cent tariff hike

india Updated: Jan 18, 2007 20:53 IST

The Maharashtra State Electricity Distribution Company (MSEDCL), sole power supplier to the areas barring Mumbai, has sought 35 per cent tariff hike across categories for the coming financial year.

MSEDCL's annual revenue requirement (ARR) submitted last week to the Maharashtra Electricity Regulatory Commission (MERC) says an escalation rate of 6.5 pc (inflationary trend) along with other factors such as costly power purchase from other sources, investment of Rs 20,397 in the next three years for meeting load growth demand and reducing distribution losses and maintenance costs are the factors behind the proposed hike.

The ARR is expected to come up for hearing very soon.

MSEDCL has sought uniform increase of 25.9 pc in energy charges except for the below poverty line (5 pc) and domestic — using 0-100 units (10 pc) categories. If fuel adjustment charge is not considered as part of the existing tariff, then the increase would be 34.93 pc.

The increased tariff would fetch MSEDCL Rs 18,772 crore revenue as against the existing Rs 15,983 cr.

In a significant move, MSEDCL wants MERC to categorise the Ratnagiri Gas and Power Pvt Ltd (erstwhile Dabhol) as "costly sources" of power purchase. "RGPPL tariff is likely to be close to Rs 4 per unit and thus will contribute to most of the 'costly sources' of power," it says.

Currently, the actual RGPPL tariff is lower than Rs 4 per unit in view of gas availability. So it has not been included in the ARR.

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