REL extends dues recovery period

MUMBAI: The consumers of Reliance Energy (REL) will get 18 months time to pay the additional electricity charge (AEC) as against the 6-month time frame prescribed by Maharashtra Electricity Regulatory Commission (MERC). The new tariffs will be applicable with effect from October 1, ’06 till March 31, ’08.

“To mitigate the hardship of consumers, REL has suo moto decided to extend the duration of recovery period. On account of this decision, the AEC will now get reduced to Rs 0.32 per unit per month for a period of 18 months as against Rs 0.97 in a period of six as prescribed by MERC order,” said REL officials.

The annual revenue requirements (ARR) of the generation, transmission and distribution functions of REL are Rs 691 crore, Rs 36 crore, and Rs 2902 crore, respectively. REL has already communicated this decision to MERC. REL supplies power to 25 lakh consumers across its license areas in Mumbai. According to the company official, the distribution cost is Rs 1.08 for the company.

MERC will issue a detailed order on tariff increase by the middle of this month. Information collected from the public hearings will be included in the order. Consumers and companies could file review petition to MERC after that, said MERC spokesperson.

The electricity consumers in Mumbai have already raised their voice against the tariff hike. According to the MERC order, the residents in Mumbai using the electricity from REL will have to pay 40% to 66% more from this month.

The ARR of the generation, transmission and distribution functions of Tata Power Company (TPCL) have been determined as Rs 2994 crore, Rs 169 crore, and Rs 968 crore, respectively by MERC.

TPCL, the bulk supplier in Mumbai, is supplying electricity to 23,000 customers. REL, BEST and Indian Railway are the major consumers of TPCL. REL is buying 700 mega watt (mw) from TPCL while BEST is taking 700-800 mw.

Owing to the tariff hike, Indian Railway will have shell out 8% more to buy electricity for running the trains. TPCL is supplying 150 mw to Railway. For 1 lakh unit, Railway was paying Rs 4,50,700 earlier, which has become Rs 4,85,000 after the revision. In the residential category, the tariff increase for TPCL consumers is 12%-21%.