Power bills set to surge by over 6%
| Date :28-Mar-2019 |
Staff Reporter,
MSEDCL to implement multi-year tariff hike from April 1 for all types of power consumers
Hike was due after MERC’s nod to MSEDCL to recover its losses in September last
The searing summer heat this year is set to fire up the electricity bills as Maharashtra will see average 6% hike in power tariff from April 1. The power bills of common man is going to be impacted substantially as during summer there is surge in power consumption. The hike comes on the expected line as Maharashtra Electricity Regulatory Commission (MERC), last year, had approved the multi-year tariff petition of distribution utilities in the State.
When contacted, Pratap Hogade, President, Maharashtra Veej Grahak Sanghatana, informed ‘The Hitavada’ that 2.50 crores consumers of Maharashtra State Electricity Distribution Company Limited (MSEDCL) including industrial, commercial, household, powerlooms and farmers would be affected with the hike in power tariff. The increase in power tariff is as per the order passed by MERC allowing recovery of Rs 8,268 crore during next two financial years to MSEDCL. In all, the commission had allowed recovery of Rs 20,651 crore from consumers to the state utility to pare its losses, which amounts to 15% increase but that was to be spread over two years with annual 6% hike.
In the third year, the hike in power rates would be average 9% to realise Rs 12,382 crore, the recovery of arrears from the consumers as regulatory asset charge (RAC). This will come into effect during next one-and-a-half years or will stretch to next six to seven years or from April 2020 onwards, Hogade added. For household, in 1-100 units slab the current rate is Rs 5.60 that will increase by 15 paise/unit, in 101-300 units slab the increase will be of 24 paise and consumption up to 500 units will see rise by 15 paise only. Along side there will also be increase of Rs 10 in fixed charges, it will increase to Rs 90. MERC had given its nod to MSEDCL to recover its losses through the order dated September 12, 2018. Along with the state distribution utility, Adani and Tata Power (they supply power in Mumbai city and Suburbs) but the rates of BEST remained unchanged. As per information, State’s Energy Department has decided to hold the next round of hike to recover Rs 12,382 crore after the assembly elections.