KSEBOA - KSEB Officers' Association

Apr 19th
Text size
  • Increase font size
  • Default font size
  • Decrease font size
Home News Power Sector News MSEDCL to challenge MERC's open access order

MSEDCL to challenge MERC's open access order

Hits smaller text tool iconmedium text tool iconlarger text tool icon
MSEDCLMaharashtra government-owned power distribution utility Mahavitaran will challenge the order of power regulator, Maharashtra Electricity Regulatory Commission or Merc to grant open access to Nagpur-based synthetic yarn company Indo Rama Synthetics (India) Ltd, said a Mahavitaran official. Under the electricity Act customers with consumption of 1 megawatt (Mw) are allowed to source power directly from power generator or exchanges.

Indo Rama has already filed a contempt petition against Mahavitaran for not implementing the regulator's 1 March order.

A Mahavitaran official said the regulator is allowing industrial customers who cross-subsidise domestic and agricultural consumers to migrate to open access system without levying cross-subsidisation surcharge, as prescribed under the law.

Due to higher level of tariffs for industrial and commercial consumers, Mahavitaran could collect additional revenue of Rs4603 crore in financial year 2009-10 and that money was utilised to cross-subsidise domestic consumers.

The high tension industrial consumer are charged Rs5.50 per unit and Rs1.25 is used for cross-subsidising other consumers.

Currently power is available at around Rs3.50 per unit on exchanges, making attractive to industrial consumers to go for open access as they avoid paying the cross-subsidy charge.

Barring Uttar Pradesh and Maharashtra, regulators from all other states have levied cross-subsidy charges on consumers who want to migrate to the open access system, said the official. The amount varies between 90 paisa to Rs3 per unit.

According to him, losing a customer whose consumption is 1 Mw leads to a revenue loss of around Rs60 crore per annum. Indo-Rama's consumption is around 7 Mw.

Going by the Merc website, the regulator has received applications from customers with an aggregate consumption of around 850 MW wanting open access facility.

Source- Mint


Add comment

Security code

Random Videos

You need Flash player 6+ and JavaScript enabled to view this video.
Title: Power Quiz 2015 Final - Part-1

Latest Comments


Reference Book


Reference Book on Power

Electrical Engineering-- D' 1/4 Size Hard bound-- 1424 Pages-- Just Rs.1000/- only &n...

Visitors Counter

mod_vvisit_counterThis Month82503
mod_vvisit_counterLast Month123110

Online Visitors: 69
Time: 01 : 07 : 56