POWER tariff has been an equaliser of sorts. For, the higher it goes, the tougher it makes for all types of consumers to not get frustrated.While the residential and industrial consumers are trying to face the situation inflicted upon them by the higher power tariff in Maharashtra, the consumers in commercial category also are struggling to survive the market competition and higher power tariff in Maharashtra. When ‘The Hitavada’ spoke to a cross-section of consumers in commercial category, they pointed out various cases to show that power tariff had actually been increasing steadily. Now, it has come to a level when it has started pinching the plans for expansion, and has forced smaller commercial establishments to curtail the operating costs. ‘The Hitavada’ brings to its readers two of such cases to explain the scenario. But, the names of commercial consumers are being held back to protect their privacy. The first case is of an establishment in Dharampeth area of Nagpur city. For July 2023, the said establishment received total electricity bill of Rs 84,322/- for consumption of 3,915 units.

 

On an average, in layman’s terms, the establishment paid the power bill at the rate of Rs 21.53 per unit. But, for July 2024, it received bill of Rs 91,290/- for consumption of 3,860 units. Again, in layman’s terms, the said commercial establishment paid electricity bill at the overall average rate of Rs 23.65 per unit. Thus, within a span of one year, the average per month electricity bill of the said establishment has increased at the rate of Rs 2.12/unit. Considering monthly average consumption of 3,600 units, this establishment has to bear increase of Rs 7,632 per month in electricity bill. This translates to Rs 91,584/- getting added to annual expenses of the firm. But, this calculation is based on average so far. If the bill amount goes on increasing, the addition to operating cost may rise further. Take the case of another company along the bustling Wardha Road area of city.

 

A commercial establishment had to pay electricity bill at the average rate of Rs 17.15 per unit for consumption in July 2023. For the consumption in July 2024, the same establishment had to pay the power bill at the average rate of Rs 19.22 per unit. Considering monthly average power consumption of the said establishment to be 6,900 units, it has to bear additional expenses of Rs 14,283/- per month.This translates to increase in annual electricity bill expenses to Rs 1,71,396/-. All these calculations are based on averages worked out as per layman’s understanding. If ones goes into tariff structure of Maharashtra State Electricity Distribution Company Limited (MSEDCL), the second establishment has to pay power bills at the rate of Rs 13.21/unit. But, it only gives energy charges component of the overall bill. The bill amount increases with addition of demand charges of Rs 20,682/-, wheeling charges levied at the rate of 60 paise per unit, time of day tariff, fuel adjustment cost levied at the rate of Re 1/unit, electricity duty, and tax on sale at the rate of 19.04 paise/unit.

 

The first establishment from Dharampeth area, has had to pay electricity bill at the rate of Rs 13.01 per unit. But, again, this constituted only the energy charges component of the bill. The bill amount increased with addition of Rs 12,408/- as demand charges, wheeling charges levied at the rate of Rs 1.17/unit, time of day tariff, fuel adjustment cost at the rate of Rs 1.10 per unit, electricity duty at the rate of 21 per cent of all these and energy charges included, and tax on sale at the rate of 19.04 paise/unit. The first establishment in Dharampeth comes under one of the sub-categories of Low Tension-Commercial category. The second establishment alongWardha Road comes under a sub-category of High TensionCommercial category of consumers.

 

Now, if one takes a look at the MSEDCL tariff cited in the Economic Survey of Maharashtra for the year 2023-24 tabled in State Legislature in June 2024, the tariff for the entire LTCommercial category ranges from Rs 11.62/unit to Rs 17.97/unit. But, in reality, the firm had to pay electricity bill at the layman’s average rate of Rs 23.65 per unit, which is way higher than the highest tariff in the said category of consumers. Similarly, in case of the second commercial establishment, the tariff for HTCommercial category is Rs 15.03 per unit for MSEDCL consumers. But, in reality, the said firm had to pay the electricity bill at average rate of Rs 19.22/unit, again higher than the tariff mentioned in the Economic Survey of India. The charges beyond prescribed tariff are taking the toll on financial health of residential, industrial, and commercial consumers in Maharashtra In contrast, though they supply electricity only to Mumbai, the power tariffs of BEST, Adani Electricity, and Tata Power are much lower than the tariffs charged by State-run MSEDCL. Why? (To be continued)