MSEDCL denies tariff discounts to PMC - Hindustan Times
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MSEDCL denies tariff discounts to PMC

BySiddharth Gadkari
Apr 08, 2023 10:51 PM IST

Pune Municipal Corporation (PMC) has requested concessional rates from Maharashtra State Electricity Distribution Limited Company (MSEDCL) due to the recent hike in electricity tariffs. However, MSEDCL has turned down the request, stating that tariff rates are set by the Maharashtra Electricity Regulatory Commission (MERC). As per the new tariff, PMC will have to pay an additional amount of around ?60 crore per year.

In light of the recent hike in electricity tariffs, the Pune Municipal Corporation (PMC) has asked Maharashtra State Electricity Distribution Limited Company (MSEDCL) for concessional rates. However, the power provider has turned down the civic body’s request.

In light of the recent hike in electricity tariffs, the Pune Municipal Corporation (PMC) has asked Maharashtra State Electricity Distribution Limited Company (MSEDCL) for concessional rates (REPRESENTATIVE IMAGE)
In light of the recent hike in electricity tariffs, the Pune Municipal Corporation (PMC) has asked Maharashtra State Electricity Distribution Limited Company (MSEDCL) for concessional rates (REPRESENTATIVE IMAGE)

As per the new tariff, PMC will have to pay an additional amount of around 60 crore per year. At present, the civic body pays 250 crore per year for electricity bills.

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PMC primarily uses electricity for the water supply department, to run Sewage treatment plants, crematoriums, hospitals, garbage processing units, Street lights, ward offices, auditoriums, schools and their administrative offices.

The civic body, in return, provides land for MSEDCL to lay down electricity cables, raise Distribution Panels (DPs), and so on.

PMC has also given concession in digging charges for laying cables. Therefore, the municipal corporation has raised a demand to provide power at concessional rates as PMC is a public entity that manages its expense with taxpayers’ money.

“PMC has always given a concession to MSEDCL in terms of providing free land at a prime location, charging only 3,500 digging charge instead of regular 12,000 per running metre,” said Shrinivas Kandul, chief superintending Engineer of PMC.

“We provide prime land for MSEDCL to build substations as well as DPs with a piece of land on a footpath. As a result, we are requesting a reduction in our electricity bills,” Kandul added.

Rajendra Pawar, chief engineer of MSEDCL’s Pune circle said the decision is taken by the Maharashtra Electricity Regulatory Commission (MERC).

“We appreciate the PMC’s valuable cooperation. However, the tariff is set by the main MSEDCL office, and the MERC is the final arbiter of the rates. We only have one revenue source, which we collect by providing electricity to customers,” Pawar said.

“If we give a discount to the civic body, we will collect it from citizens by raising the tariff. In the end, the consumer will have to pay additional fees. As a result, making concessions to the PMC is not an option.” he said.

MSEDCL charges 7 per unit for street lights, 12 for theatres, and 8 to 10 for water treatment and sewage treatment plants. PMC spends the most money on electricity for street lights, water purification units, and sewage treatment plants, hence the civic body has asked for discounted rates to be provided for these facilities.

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