MSEDCL hikes fuel adjustment charges on power usage for September

Maharashtra's MSEDCL raises power bills for over 31 million consumers due to increased fuel adjustment charges, impacting all usage categories.

MUMBAI: Over 31 million consumers of the Maharashtra State Electricity Distribution Company Limited (MSEDCL) will have to contend with a larger bill in the coming month. The power distribution company has increased fuel adjustment charges on power consumption for the month of September, which will affect consumers across the board.

MSEDCL hikes fuel adjustment charges on power usage for September

Residential consumers using up to 100 units of electricity per month will have to pay 35 paise more per unit, which is an addition of 15 paise. Those using up to 300 units per month will have to pay 65 paise, while the setback for users of up to 500 units is 85 paise. Those exceeding more than 500 units per month will have to shell out 95 paise per unit.

For non-domestic categories, the fuel adjustment charge has been imposed in three categories—65 paise per unit for those using up to 20kW (kilowatt) power a month, 80 paise per unit for consumers using up to 50 kW and 90 paise per unit for using more than 50 kW per month. A circular detailing the rise for both categories was issued by MSEDCL on October 1. MSEDCL officials said the decision was taken to offset the high-priced power purchased by the company to meet demands.

“Following the power purchase agreement, we have to pay more to the power generation companies in case the price of power goes up in the market, and that additional expenditure needs to be offset by imposing additional charges on the consumers,” said a senior MSEDCL official. “The same happens when there is a surge in coal prices.”

MSEDCL currently serves 31.7 million customers in 457 cities and 41,928 villages in the state via a large electricity distribution network, making it one of Asia’s largest power distribution companies. It supplies around 26,000 MW electricity to the state on a daily basis in parts of Mumbai’s eastern suburbs and the rest of Maharashtra.