State power firm blames MERC for proposed hike
The state-owned power distribution company, Mahavitaran, which is seeking a 17.68% hike in tariff for the next two years, is blaming the Maharashtra Electricity Regulatory Commission (MERC). Dharmendra Jore reports.mumbai Updated: May 29, 2012 00:55 IST
The state-owned power distribution company, Mahavitaran, which is seeking a 17.68% hike in tariff for the next two years, is blaming the Maharashtra Electricity Regulatory Commission (MERC).
The company submitted its demand to MERC on Monday, seeking a hefty discount for industries for night-time supply but asking for a hike for residential and commercial consumers. Mahavitaran caters to the city’s eastern suburbs, Thane, Navi Mumbai and other parts of the state.
As per the company’s petition, it wants a hike of Rs 7,623 crore for the next two years.
“Of this, Rs2,988 crore has been pending for recovery for long. We would have downsized the tariff this time had the MERC approved this amount earlier,” said a senior company official. The argument is likely to hog the limelight when the petition comes up for public hearing in July.
Justifying the allegation, the official said the regulator did not allow the company to recover from consumers a sum of Rs 427 crore for the year 2008-09. “This was approved by the highest authority — Appellate Tribunal for Electricity. Also, the MERC allowed state generation and transmission companies to recover from us Rs 610 cr and Rs 230 cr, respectively. We would have recovered the same from our consumers much earlier.”
Mahavitaran has also added in the recent petition Rs237 cr that the regulator had disallowed to be recovered in capital expenses and Rs1,484 cr in fuel surcharge.
The company argued that the amounts mentioned above could have been recovered in installments from its 1.90 cr consumers across the state. “The impact on the monthly bills could have been much less had the commission acted promptly,” said the official.
MERC chairman VP Raja is abroad and was unavailable for comment.