Double whammy: Power consumers to feel heat as increased FAC rate kicks in

Staff Reporter

Consumers of Maharashtra State Electricity Distribution Company Limited (MSEDCL) would have to shell out extra money from new year as the company has increased the rate of fuel adjustment charge (FAC). This hike comes on the back of an already steep hike of 37 per cent in slab rates of power distributed by the state run power distribution company. The hike in FAC is meant to cover-up for the expensive power purchased during the peak summer season to ensure citizens gets uninterrupted supply. The increased FAC will be reflected in month of January for the power usage from the month of December 2023. MSEDCL has already got approval from Maharashtra Energy Regulatory Commission (MERC) about passing on the burden of high power rates to consumers across all categories. The increase as per energy experts will be in the range of 25 to 65 paise/unit translating into an increase in bills from Rs 300 atleast for the residential category consumers.

In fact, MERC had ordered MSEDCL in year 2020, while deciding the Multi Year Tariff petition, to add FAC compulsorily to consumers bills. As such, MSEDCL started recovery through mechanism of FAC from April 2020 onwards itself, said a circular issued by Chief Engineer (Power Purchase), MSEDCL. In fact, there is no change in FAC component from November to December and it is constant at 0.10 paise/unit for domestic in 1-100 units range; 0.25/unit in 101-300; 0.45/unit in 301-500 units and 0.60/unit in 301-500 units and 0.65/unit in 500 unit and above. Besides the domestic category, even the industrial sector of the State are also going to shell out extra money as they are going to have to pay in range of 30 to 40 paise per unit.

In the recent past, electric vehicles sales have been buoyant and those having it are a happy lot, owing to ongoing issue of truckers due to which there is scarcity of fuel. But the extra FAC is going to play spoil sport when the bills for December are received by the customers across the State, excluding Mumbai. This year, hike in power tariff was one of the steepest in the history and on top of that adjustment for costly power purchase would be double whammy for the consumers across all categories, feel the experts in the field.