Now, MSEDCL wants to hike its tariff by 8%

The Maharashtra State Electricity Distribution Company Limited (MSEDCL), which supplies power to the entire state, except large parts of Mumbai, has proposed a tariff

The Maharashtra State Electricity Distribution Company Limited (MSEDCL), which supplies power to the entire state, except large parts of Mumbai, has proposed a tariff hike of 8% for its low-end consumers (0-100 units) and a 5% hike for consumers in the 101-300 units category. However, it has not proposed any hike for those in the 300-above 500 units category, for the financial year (FY) 2021.

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According to power experts, consumers between the 0-100 units would constitute more than 50% of MSEDCL’s 2.20 crore consumer base across Maharashtra. In Mumbai, the discom serves power between the Kanjurmarg and the Bhandup-Mulund belt.

For below-the-poverty-line families, which would include consumers in the 0-30 units category, MSEDCL has proposed to increase the tariff from the current ₹1.10 per kilowatt-hour (kwh) to ₹1.36/kwh in FY21 followed by a subsequent 3% hike in FY22. It has proposed an increase in tariff for industrial consumers by 1% and railways by 3%.

A senior official from MSEDCL, who did not wish to be named, said, “There has been a 2% shift in the consumer base from the above-500 units category to the low-end user category in recent years.” The discom has announced a revenue gap of ₹2,288 crore for the financial year 2019-20. Citizens can send their suggestions/objections on the five-year power tariff plan by February 4 following which public hearings will be held in Pune, Navi Mumbai, Nagpur, Aurangabad, Nashik, and Amravati, between February 6 and 15.

The proposal will be examined by the Maharashtra Electricity Regulatory Commission (MERC) which is expected to release its final order for power tariff for the next five years by March 2020.

In Mumbai, Adani Electricity Mumbai Limited (AEML) proposed a 1-4% cut on tariff for those in the 0-300 units category, while Tata Power has doubled its tariff for the 0-100 units category.