MSEDCL hikes power tariff from January

Power consumers in Maharashtra will have to pay more as the Maharashtra State Electricity Distribution Company (MSEDCL) increases tariff by 25 paise to 65 paise per unit through a "fuel adjustment charge" (FAC). This will result in an extra burden of up to ₹300 per month for residential consumers starting from January. The decision was made following an order from the Maharashtra Electricity Regulatory Commission (MERC) to recover the cost of expenditure on costly power purchase.

Mumbai: Power consumers will have to pay more as the Maharashtra State Electricity Distribution Company (MSEDCL) has decided to increase tariff by 25 paise to 65 paise per unit through a “fuel adjustment charge” (FAC). This means that around 2.8 crore residential consumers will end up paying up to ₹300 more a month starting from January.

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MSEDCL serves consumers in parts of eastern suburbs, Thane, Navi Mumbai, Kalyan, Vasai-Virar and other parts of Maharashtra.

The state-owned power firm took the decision following an order issued by Maharashtra Electricity Regulatory Commission (MERC) in 2020 that had given approval to recover the cost of expenditure on costly power purchase.

Going by that approval, MSEDCL will charge a fuel adjustment charge (FAC), which will be applicable to consumers in the bills from January onwards. MSEDCL has also declared the consumer category wise FAC.

According to the MSEDCL circular, residential electricity consumers using up to 100 units of electricity will have to pay an extra 25 paisa per unit for the electricity. Consumers with usage of 101 to 300 units per month will have to pay an extra 45 paisa per unit. Consumers with usage of 301 to 500 units per month will have to pay an extra 60 paisa per unit. Consumers using more than 500 units of electricity per month will have to pay 65 paisa per unit extra than regular power tariff.

Besides residential consumers, small industries will have to pay 30 paise to 40 paise per unit extra and considering the usage of industries and business establishments this will result in the extra burden of a few thousand rupees as per their electricity usage. Tariff for electric vehicle charging stations has also increased through FAC and they will have to pay 40 paise per unit extra for the usage. Municipal corporations also will have to pay an extra 40 paisa per unit for the electricity used for street lights.

Pratap Hogade, president of state power consumer organization, said that while the hike was on the cards, it still comes as a burden to consumers. “FAC was always allowed as the difference in the Power Purchase Cost due to quantum and rate of purchase. Still, it is a shock for consumers as it increases the electricity bill. In future, there will again be a hike in FAC for coal cost difference repayment.”