MERC order on cross-subsidy surcharge spares domestic consumers

Commercial consumers of Anil Ambani-led Reliance Infrastructure in Mumbai who have migrated to Tata Power would now be required to pay a cross-subsidy surcharge (CSS)  ranging from Rs0.26 per unit to Rs2.79 paise per unit.

Reliance Infrastructure has been allowed to levy cross-subsidy surcharge in the range of Rs0.26 to Rs2.22 per unit for HT consumers and Rs0.83 to Rs2.79 per unit for extra high voltage (EHV) by the  Maharashtra Electricity Regulatory Commission (MERC) through its order issued today.

According to the commission, the cross-subsidy surcharge would be applicable prospectively from the date of the order.

Last month MERC had allowed Reliance Infrastructure to recover cross subsidy from all its consumers who had migrated to Tata Power. It had allowed a levy of surcharge ranging from Rs0.84 per unit to Rs1.90 per unit from non-domestic LT consumers and additional Rs0.03 per unit from residential consumers with single phase connection and consuming 500 units and above.

With the order, suburban consumers who feared that the cross-subsidy surcharge (CSS) levied on them for changing their electricity provider would impact their monthly power bills, can heave a sigh of relief. 

MERC's order has spared Tata Power customers who consume less than 500 units a month from payment of surcharge to  RInfra.

MERC has also assured the same benefit to Mahavitaran consumers, who use the open access method - buying more than 1 MW of power from cheaper source using Mahavitaran's distribution network.