Power tariff hike in MP: Industrialists frown

The industry bodies in Madhya Pradesh are disappointed with the new power tariff order for not giving any relief to the sector.

bhopal Updated: Apr 19, 2015 15:31 IST
Neelesh Chaudhari
Neelesh Chaudhari
Hindustan Times
power tariff hike,MP Electricity Regulatory Commission,discoms

The industry bodies are disappointed with the new power tariff order for not giving any relief to the sector.

The industries were expecting relief for power consumption in evening peak load period (6pm to 10pm) and off peak load period (10 pm to 6 am).

The MP Electricity Regulatory Commission (MPERC) reduced the rebate from 7.5% to 5% for use of power during evening peak load period.

While the rebate of 15% given to the industry for power consumption during off peak load period is unchanged in the new tariff plan.

"The demand of industries for relief for power consumption in off peak hours and evening peak hours was not considered," DR Jaiswani, general secretary of Mahakushal Udyog Sangh, told HT.

"The government has to pay attention on such small issues to encourage industrial investments," Jaiswani said.

Besides it is difficult for most of the small-scale industries to keep their power factor above 90% failing which they have to pay penalty to the discoms.

There was a demand from the industries for relaxation in the penalty, Jaiswani said.

If the average monthly power factor of the consumer falls below 90%, the consumer shall be levied a penalty, the tariff order said.

"Due to poor upkeep of power distribution network and alleged substandard quality transformers we do not get quality supply due to which the power factor in most small-scale industries remains below 90%," Jaiswani claimed.

The industries were concerned over the discoms charging rent for meter installed at the factory site, but their demand to discontinue meter rent was rejected.

Overall average of tariff hike for domestic and industries categories is 30-35%, Shankar Nagdeo, a spokesperson of Mahakoshal Chamber of Commerce and Industries, said.

"The industries have to spend more on the power in the current financial year," he said.

The Jabalpur Chamber of Commerce and Industry (JCCI) wants the statutory consolidated audit of the state government-run three power distribution companies by the Comptroller and Auditor General so that their shortcomings in the power distribution is revealed to the public and the tariff is finalised accordingly.

JCCI senior vice-president Hemanshu Khare said, "The government is using the MPERC as shield in its endeavour to hike power tariff."

First Published: Apr 19, 2015 15:13 IST