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Home News Power Sector News MERC allows Mahavitaran to charge 41 paise more from November 1

MERC allows Mahavitaran to charge 41 paise more from November 1

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MERCPartially conceding power distribution utility MSEDCL's demand, Maharashtra Electricity Regulatory Commission (MERC) has levied a power surcharge on consumers instead of effecting a full-fledged tariff hike. The 9% surcharge will effectively increase the power bill by over 10% due to electricity duty on the surcharge. MSEDCL had, in mid-September, filed a petition seeking a tariff hike on interim basis till a proper tariff petition was filed for 2011-12. A fortnight later, it decided to withdraw this petition and sought a uniform surcharge of 61 paise per unit for recovering the loss incurred in the last two fiscals.

The average surcharge allowed by MERC is 41 paise per unit. The Commission has rejected the demand for a uniform surcharge and it is lower for lower-end domestic consumers, farmers, etc and more for industries and high-end consumers.

The surcharge will be levied for twelve months. It is not clear whether MSEDCL will file a tariff petition for 2011-12 or it will be satisfied with this order. MSEDCL chief Ajoy Mehta told TOI that the company would decide only after going through the order. TOI has learnt that so far MSEDCL has not started preparing any tariff petition for 2011-12.

MERC has not changed various components of industrial tariffs like time of the day (TOD) tariff, voltage surcharge, etc.

The Commission has given major relief to lower-end domestic consumers. In its petition, MSEDCL had sought to increase the tariff to Rs 4 per unit against the existing tariff of Rs 2.61 per unit. This tariff is for domestic consumers consuming less than 100 units per month. However, MERC has increased it only to Rs 2.87 paise per unit. This has come at the cost of industries. MSEDCL wanted to charge continuous industries at the rate of Rs 5.95 per unit but MERC has increased the tariff to Rs 6.10 per unit. The tariff for non-continuous process industries is also more than that demanded by MSEDCL.

MSEDCL had claimed that it had incurred a loss of around Rs 5,500 crore in 2009-10 and 2010-11 combined. However, MERC has ruled that this figure was only around Rs 3,200 crore. The surcharge has been levied to recover this deficit.



Slab Old New

0-100 261 286.83

101-300 461 505.83

301-500 659 723.08

500-1000 765 839.39

1000+ 791 865.39

Hospitals, schools, etc

Slab Old New

0-200 454 498.15

200+ 633 694.55

Shops, offices, etc

Slab Old New

0-200 475 521.19

200+ 681 747.22

(Slabs in units consumed. Rates in paise/unit)

Source- Times of India


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