Eastern suburbs to pay more for power from this summer | mumbai | Hindustan Times
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Eastern suburbs to pay more for power from this summer

mumbai Updated: Apr 16, 2011 01:25 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Two separate orders by the state electricity regulator will inflate your power bills this summer.

The Maharashtra Electricity Regulatory Commission (MERC) on Friday asked suburban supplier Reliance Infrastructure (RInfra) to buy power from Wardha Power Company as per the agreement entered between the two last year. RInfra contended that the consumers would have to pay more because Wardha Power did not guarantee continuous supply and its tariff was more than Rinfra’s existing procurement.

In another order on March 31, MERC had corrected miscalculations in the Mahagenco (state generation company) that sells its entire power to government-owned Maharashtra State Electricity Distribution Company Ltd (MSEDC) to recover additional revenue of Rs432.50 crore in six equated monthly installments with immediate effect.

MSEDC will recover the revenue from its 1.80 crore consumers in eastern suburbs Kanjurmarg, Bhandup and Mulund, Thane and Navi Mumbai and rest of Maharashtra.

As per MERC’s interim order issued after Wardha power appealed against termination of purchase agreement, RInfra will buy Wardha power at the rate of Rs4.85 per unit as against its current procurement at Rs2.50 to Rs4.24 per unit. The agreement starts from April 20 this year and will continue for three years. The initial supply of 120 mega watts (MW) will be increased to 260 MW by May 1, 2011.

A senior RInfra official said the company terminated agreement with Wardha power because the supplier did not guarantee continuous supply. But MERC contended that it was important to protect consumer interest.

In another order that will increase bills of the MSEDC consumer, regulator has revised calculation of interest on working capital for year 2008-09 (Rs6.67 cr), revenue side truing up for year 2008-09 (Rs305.59), fuel costs for year 2009-10 (Rs121.24 cr) and corrected some other accounting errors.

“MERC should employ experts in finance and accounting because they know where to find mistakes,” said Sandeep Ohri, who is MERC-approved consumer representative and a chartered accountant by profession. Power company officials and MERC did not comment.