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Home News Power Sector News Mumbai - Rinfra demands increase in wheeling charge and cross subsidy surcharge

Mumbai - Rinfra demands increase in wheeling charge and cross subsidy surcharge

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RinfraRInfra has filed a petition for truing up tariff for year 2010-11 (up to March 2011).  RInfra has asked for 31% increase in wheeling charges (charges for using its network by other supplier to connect the switch-over consumers) from 88 paisa to 115 paisa. The company has also demanded a cross-subsidy surcharge varying from Rs 2 to Rs 8 (depending on category) for consumers who shift to Tata.Reliance Infrastructure (RInfra) doesn't want to burden its consumers further, but wants the regulator to approve more charges for those who switch over to other suppliers. The petition was discussed for technical validation at the office of the Maharashtra Electricity Regulatory Commission's (MERC) office on 16-11-2010.

As per MERC directive, the new multi-year tariff will come into force from April 2011. It means there will be no tariff revision every year.

More than 60,000 suburban consumers have shifted to Tata Power in the past year.

Consumer activist Sandeep Ohri, who debated RInfra proposal on, told the Hindustan Times that RInfra's demand would kill any kind of competition. "RInfra has done nothing to procure additional power to bring its own tariff down."

Ohri said there were many discrepancies in the petition. "MERC has asked RInfra to file a fresh petition within 10-12 days."


Source- Business standard

 

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