Maharashtra raises power tariffs by up to 55 paise per unit

MSEDCL has raised electricity tariffs by 20-55 paise per unit through a fuel adjustment charge, increasing bills for households, industries and businesses.

Electricity consumers in Mulund, Thane, Navi Mumbai and Kalyan-Dombivli in the Mumbai Metropolitan Region (MMR) and in the rest of Maharashtra will have to pay more for power as the Maharashtra State Electricity Distribution Company (MSEDCL) has raised tariffs. The increase – ranging between 20 paise to 55 paise per unit – is a “fuel adjustment charge” (FAC).

Electricity consumers across Maharashtra will pay more after MSEDCL raised tariffs through a fuel adjustment charge. (HT Photo)

The state-owned power company took this decision as the Maharashtra Electricity Regulatory Commission (MERC) allows power distribution utilities to retrospectively recover the cost of an increase in power purchase by charging an FAC.

Household power bills to rise under new FAC

Under the new tariff structure, residential consumers using 300 units of electricity per month will have their monthly bill go up by ₹105, and for 500 units, it will increase by ₹250.

Small industries will also have to pay more – 25 to 35 paise more per unit. Considering the amount of power these industries use, monthly bills are expected to rise by a few thousand rupees each. The tariff for commercial consumers – shops, malls and other business establishments – has been hiked by 35 to 60 paise more per unit, as per their usage.

New tariffs after FAC applies (HT Infographics)

MSEDCL officials said the company had spent more than estimated to purchase power for various reasons, such as an increase in the rate of power. This is being recovered through FAC. “Accordingly, we are charging an average 30 paise per unit,” said an official.