You may have to pay more for little power you get
The tussle between the state power distribution company and the power regulator has just got more bitter, spelling more trouble for the energy-starved state.
By TNN |
MUMBAI: The tussle between the state power distribution company and the power regulator has just got more bitter, spelling more trouble for the energy-starved state.
MahaVitaran, Maharashtra’s power distribution utility, has expressed its inability to purchase “costly power’ at the existing tariff fixed by the regulator. It wants the regulator to increase the “additional supply charges” and put in place a mechanism to recover the cost of expensive power.
If Maharashtra Electricity Regulatory Commission (MERC) concedes to MahaVitaran’s demand, the consumers could be in for a tariff hike. For, the costly power being purchased by MahaVitaran is being supplied at a subsidised rate of Rs 5.36 per unit at present. The utility wants this to be hiked to at least Rs 7-8 per unit.
“MahaVitaran may not be in a position to procure power at the existing additional supply charges. MERC needs to clarify exactly how much costly power we are allowed to procure and at what rate we can recover the cost from consumers,” an official said.
MahaVitaran supplies power to entire Maharashtra except for the island city of Mumbai and its suburbs. The distribution company has raised objections to the tariff order passed by MERC on April 27. The order keeps the additional supply charges at an “unrealistic level” of Rs 5.36 per unit when the prevailing rate for power available in the market is Rs 7-8, the utility has claimed.
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The distribution utility has also pointed out a contradiction in the tariff order. “The order gives a feeling that the ceiling on purchase of costly power has been removed. At the same time, MERC has limited recovery of costly power to 4,550 million units only in a year. MERC wants to procure more costly power but at a very low recovery rate,” a MahaVitaran release says.The utility officials informed that it’s taking a hit of Rs 125 crore per month for the approved 400 million units of costly power purchase at present.
“In case additional 330 million units are procured per month, the deficit would shoot up to Rs 379 crore. This makes additional purchase of costly power financially unsustainable,” an official said. He referred to the recent decision by central Electricity Regulatory Commission to hike additional supply charges to Rs 7.49 per unit.
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