State power consumers might face tariff hike

The State power generation company Mahagenco and State power transmission company Mahatransco have submitted mid-term review petition to Maharashtra Electricity Regulatory Commission (MERC) demanding a rate hike of ₹24,832 crore and ₹7,818 crore respectively.

Mumbai: If the petition submitted by the state power generation and transmission companies is anything to go by, there is a possibility that the electricity consumers in the state might be staring at a tariff hike of about ₹1.35 per unit.

The demand by the state generation and transmission companies is an indication of a significant power tariff hike in the pipeline for electricity consumers of Maharashtra State Electricity Distribution Limited (MSEDCL) the power distribution company. (Image for representation)

The State power generation company Mahagenco and State power transmission company Mahatransco have submitted mid-term review petition to Maharashtra Electricity Regulatory Commission (MERC) demanding a rate hike of ₹24,832 crore and ₹7,818 crore respectively.

The demand by the state generation and transmission companies is an indication of a significant power tariff hike in the pipeline for electricity consumers of Maharashtra State Electricity Distribution Limited (MSEDCL) the power distribution company.

Power expert and president of state power consumers association, Pratap Hogade said, “Demand of revenue hike in the petition of Mahagenco and Mahatransco is indicating possibility of about ₹1.35 per unit tariff hike for electricity consumers.

“It will be a tariff shock for common electricity consumers. So, the state government should step in to avoid this burden on common man.’’

As per the Electricity Act, every power generation, transmission and distribution company can submit mid-term review of their revenue requirement based on additional expenditure in the last two years.

After the submission petitions by Mahagenco and Mahatransco, the Mahavitaran proposal is expected to be finalised. The MERC will hold a hearing on the petition and then give the final decision on the proposed rate hike. Last power tariff hike order was given by MERC in 2020 for five years.

Mahagenco has demanded ₹24,832 crore for additional expenditure on the power generation in the last four years and expected expenditure on power generation in the coming two years.

Mahatransco has proposed the hike to cover ₹7,818 crore incurred additional expenditure it incurred in the last two years and estimated expenditure in the coming two years. Both put together, demand for a hike goes up to ₹ 33,000 Crore. This amount will be a part of Mahavitaran’s petition to be submitted soon.