Maharashtra state utility opposes tariff hike for wind power projects

MUMBAI: Maharashtra state utility has opposed the Maharashtra Electricity Regulatory Commission's (MERC) move to increase tariffs for wind power projects saying it will only add to its financial burden.

As per the draft order of the MERC on determination of generic tariff for wind projects, the Commission has proposed a tariff of Rs 5.80 per unit for projects in FY14 as against the existing Rs 5.67.

"Already the tariff in Maharashtra is higher as compared to other states including Andhra Pradesh and Gujarat. If the Commission goes ahead with the proposed tariff increase mechanism, the tariffs will increase to over Rs 7 per unit by 2019," Mahavitaran Executive Director Abhijit Deshpande said.

He further said the due to this, the company will have to buy expensive power from the developers.

"Even if we do not require excessive power, we will have to compulsorily buy it only to fulfil our renewable purchase obligation, which is inviable. As a result, we will have to pass on the additional cost burden to the consumers," he said.