Power shock: MSIDCL proposes over 50 per cent hike in tariff

14 May 2009

The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has proposed a near-doubling of its power tariff across the state (excluding Mumbai) and projected a huge deficit of Rs9,578 crore and pending dues of Rs10,000 crore.

MSEDCL has proposed a 100 per cent hike in fixed charges and 10 to 50 per cent hike in variable charges in its power tariff for residential consumers.

Over 10 million consumers in the Mumbai suburbs of Mulund, Bhandup, Kanjurmarg, Thane, Kalyan-Dombivli, Navi Mumbai, Ulhasnagar, Bhiwandi and Vasai-Virar are likely to see their electricity bills double once the Maharashtra Electricity Regulatory Commission (MERC) clears the proposal in its present form.

MSEDCL has proposed a tariff of Rs6.92 per unit against the existing Rs4.64 per unit for high tension (HT I) consumers in the continuous process industries and Rs5.76 per unit (Rs4.28 per unit) for HT non-continuous process non-express feeder industries.

For seasonal HT consumer industries, MSEDCIL has proposed a tariff of Rs7.15 per unit against the current Rs5.35 and Rs9.81 (Rs7.39) for HT II industries.
 
MSEDCL has spared farmers, consumers below poverty line (single bulb category) and water supply schemes from the proposed tariff hike.

MERC will hold public hearing on the proposal at various centres beginning 17 June. The schedule is: Amravati - 17 June; Nagpur - 18 June; Aurangabad - 22 June; Nashik - 25 June; Pune (Council hall) - 29 June;  and Navi Mumbai - 1 July. Hearings will start at 11 am.