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No more rude shocks in your power bills

mumbai Updated: Feb 03, 2011 01:42 IST
HT Correspondent
HT Correspondent
Hindustan Times
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You are likely to see some stability in your electricity bills and will soon be spared annual or sudden tariff hikes. Your bills could also reduce in the long run.

The Maharashtra Electricity Regulatory Commission (MERC) has decided to determine power tariff every five years, starting April 1, instead of doing it every financial year.

The regulator on Wednesday said that it would adopt a multi-year tariff system in which power companies will not be allowed to change tariff unless certain select, uncontrollable parameters change. These could be a natural calamity or changes in the law.

The new system will force distribution licencees to enter into long or medium-term contracts at optimum rates for the quantum of power required for that period. Power companies will have to submit a five-year business plan with demand and supply projections, power procurement plans and capital investments.

The companies, then, cannot buy expensive power in short intervals and pass the cost to the consumer. This means consumers can expect less power cuts and reasonable tariff.

The MERC has also specified how factors affecting tariff should be treated and how losses or profits should be shared between the utility and consumers. The regulator will review these factors every five years.