Per unit cost of power may go up by 8 paise
MSEDCL aims at revenue gap recovery of Rs 34,646 crorepune Updated: Jul 14, 2018 17:09 IST
The Maharashtra state electricity distribution company limited (MSEDCL) has filed a mid-term review petition with the Maharashtra electricity regulatory commission (MERC) for recovery of the revenue gap of about Rs 34,646 crore.
As per the proposal, 1.41 crore residential consumers will have to bear a hike of 8 paise in the per unit cost for the year 2018-19. In this petition, the rebate of Rs 1 per unit is proposed to the new industries set up in the state. The low tension consumers paying their bill online will get 0.5 per cent discount on their electricity bills. The MSEDCL officials said that no tariff hike is proposed for the year 2019-20.
A statement released by MSEDCL said, “The number of consumers having 0 to 100 unit consumption in MSEDCL is approximately 1.41 crores. Considering the energy charge and wheeling charge together, 8 paise hike is proposed on the existing rate of Rs 4.25 per unit, making it 4.33 per unit for the year 2018-19 for the consumers in the consumption slab of 0 to 100 unit.”
The statement added that to encourage new industries and the existing high tension consumers in the state, Mahavitaran has made special provisions in its petition. “It has proposed Rs 1 per unit rebate for those who set up new industries and offering rebate of Rs 1 per unit to the existing consumer (industries, commercial and railways) for increasing their consumption. It has also proposed to give 1 per cent to 10 per cent rebate to consumers having high consumption of (0.5 million units or more),” said the statement.
In addition to this, MSEDCL has proposed to suspend the benefit given to the high tension consumers (power factor/load factor) considering its impact on the other consumers of MSEDCL.
Officials from MSEDCL said, “Earlier, in 2016, Mahavitaran proposed the revenue deficit of Rs 56,372 crore. However, the commission approved only Rs 9,149 crore against the same. It included revenue from the fuel adjustment expenditure of Rs 19,373 crore. In the order, the commission had approved only 1.20 per cent to 2 per cent tariff increase for the period from the financial year 2016-17 to the financial year 2019-20. While the prevailing inflation was in the range of 5 per cent to 6 per cent, the hike approved by the commission was not sufficient to meet the total day-to-day expenses of MSEDCL.”
They added that due to reasons such as reduced recovery as per the commission's order and impact of variations in other expenses, the revenue loss in the mid-term review petition is Rs 34,646 crores, which also includes the carrying cost.
“Also, Mahagenco has filed its mid-term review petition with the commission and proposed to increase the annual fixed charges in the years in 2018-19 and 2019-20. This has resulted into increase in cost of Rs 950 crore which is also included in Mahavitaran’s petition. Mahavitaran has proposed a 15 per cent rise in electricity tariff over the approved rate for 2018-19. Thereafter, no rise has been proposed for the year 2019-20 to avoid future carrying costs,” said officials from MSEDCL.
First Published: Jul 14, 2018 16:55 IST