MSEDCL proposes power tariff hike, industry alarmed

The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has submitted a fresh proposal before the Maharashtra Electricity Regulatory Commission (MERC) for a marginal tariff hike for its 2.5 crore odd consumers across the state. The move comes despite the fact that a record number of industrial houses have already deserted MSEDCL owing to its exorbitant power costs.

MSEDCL has sought a hike in tariffs for the next four financial years, till 2020, but the final decision rests with the MERC. If approved, residents of parts of the eastern suburbs, Thane and Navi Mumbai, and industrial houses can expect hiked power bills from April. Residents in these regions got a 20% subsidy in power bills two years ago and effectively no tariff hike last year, officials said.

While an MSEDCL spokesperson told TOI that a proposal for a 5.5% hike in power rates, under the multi-year power tariff rules, had been submitted to the MERC for approval, energy expert Pratap Hogade alleged MSEDCL has submitted a proposal for a 6-8% tariff hike. Hogade, president of the Electricity Consumers’ Association, claimed that if one added the fuel adjustment charges (which may come to 12-13%), the overall tariff hike for residential users could “go up to 20%” in 2016-17. “The entire proposal is shocking. A month ago, the state energy minister had assured power tariffs will be reduced in a time-bound period, but now the MSEDCL has submitted a proposal for a massive hike,” he said. Read More…