Already reeling under stupendous hike in power tariff of nearly 40 per cent over the last four years, the new multi year tariff (MYT) petition of Maharashtra State Electricity Distribution Company Limited (MSEDCL) would further upend the energy rates for consumers in Maharashtra. Lokesh Chandra, Managing Director, MSEDCL, at the outset pointed out that for the first time, the Discom has envisioned lowering of power rates in MYT. But industrialists, social organisations and energy experts countered with data presentation how consumers’ power bills are going to increase manifold.

 

Maharashtra Energy Regulatory Commission (MERC) on Tuesday held on-line hearing of the MYT petition. Tuesday was last session scheduled for Nagpur Division but of the 232 persons and organisations who had filed their objections, only 31 turned-up for physical appearance. On the spot, additional 11 persons joined the hearing. MSEDCL had made arrangements for people to participate in the e-hearing at Niyojan Bhavan in Civil Lines. Due to lack of publicity, only a handful of people, mostly industrialists and some players from solar industry came forward to voice concern over the tariff petition. Some of the persons who had filed objections appeared through on-line mode. But strangely, not a single public representative came forward to either justify the MSEDCL proposed tariff or oppose it from consumers point of view. A common thread of those opposing MSEDCL petition was that the current tariff in Maharashtra is highest in the country and urged MERC not to allow any new hike over next 5-years, once the current MYT is finalised.

 

The most contentious point that many persons objected to was Time of Day (ToD) concept where Discom wants to subsidise power usage during day time and charge extra for night usage. The point is that maximum consumption at households occurs during night time compared to day usage and therefore that would incur substantial rise in power bills. Prashant Goyal of Chandra Industries Association compared the power tariff of Maharashtra with neighbouring States and claimed that steel industries are migrating to Chhattisgarh due to lower rates. Time has come for MSEDCL to rationalise the tariff or otherwise industries would continue to move out. Another representative from industry, Sandip Budhe pointed out that since power generation during day time is on higher side, the surplus energy usage during night should continue to be allowed. Earlier, Ankush Diwe demanded categorisation of milk collection centres under agriculture category form current commercial one.

 

This would benefit the farmers in Vidarbha and Marathwada and ensure higher returns for them. Similarly, Mahendra Jichkar, Energy Expert, called for rationalisation of tariff hike petitions from MSEDCL, as the Discom at times is seeking hike in tariff twice in the year. This is putting unnecessary burden on the consumers who are at loss to comprehend the need for repeated hike in tariff, either revision in tariff or through hike in fuel adjustment or fixed charge. He further claimed that consumers have experienced tariff rise ranging from 17% to 42% since the MYT order was confirmed in 2020. Surprisingly even after 2020, Discom filed review petition and the tariff increased further in 2023. An illusion is being created to hide the tariff rise as MSEDCL is smartly going for hike in 2-3 stages. He submitted a comparison of tariff hike if MSEDCL petition is allowed, wherein household consumers in 100-300 units usage category would witness hike of upto 9.95 per cent while in 301-500 the increase would be 7.82 per cent and above 500 units about 7.19 per cent compared to present tariff. In 2025-26, he said that the tariff hike would be in range of 7 to 10 per cent, excluding FAC.

 

Opposing the hike sought by MSEDCL, Anil Wadpalliwar, social activist, told the Commission that already, the industries from Nagpur region are shifting base to Saunsar. Rates in Madhya Pradesh are cheaper by Rs 3 to 4/unit and he questioned the logic of high rates in Maharashtra. Wadpalliwar said ultimately, the youth in the region would suffer as job creation ratio is getting reduced owing to shifting of industrial base. Further, he demanded that consumers in Vidarbha should get subsidy in tariff as they are suffering from pollution due to presence of thermal power plants. Vidarbha accounts for highest thermal power production and due to usage of substandard coal, the emission from MahaGenco’s plants is on higher side and people are suffering from various ailments.

 

Therefore, their demand for lower tariff is justified. Jichkar also contended in his submission to disallow any extra charges other than provided in the tariff order and also formulate a system to penalise the generator for not providing the required power as per the agreement. Akhil Bharatiya Grahak Panchayat urged MERC to look into huge outstanding of MSEDCL which is sought to be recovered from pockets of consumers, which is totally unjust. Aniruddha Gupte and Sanjay Dharmadhikari appearing on behalf of the organisation said people in Maharashtra are suffering due to usage of poor quality of coal. Also, the Discom has failed to lower the transmission losses and the burden shifts to people. (Related report on page 6)