New Year shock from power regulator: rates set to go up
Maharashtra Electricity Regulatory Commission allows power distributor revenue recovery of Rs 405 crore
Electricity rates are set to rise once again as the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has been allowed a revenue recovery of Rs 405 crore. This is the second recovery allowed by the Maharashtra Electricity Regulatory Commission (MERC) to the loss-making power distribution firm.
Activists had strongly protested against the last tariff hike in a public hearing conducted in the Council Hall in October last year by the MERC when revenue requirement of Rs 3,265 crore was granted to the MSEDCL.
The Maharashtra State Power Generation Company Limited (MSPGCL) has also been allowed to raise Rs 595 crore for setting up the new Units 6 and 3 at Parli and Paras power plants respectively. This will raise electricity tariff by at least 10 per cent, said sources from both the companies.
The MSEDCL had asked for a total revenue recovery of Rs 5,098 crore for the years 2009-10 and 2010-11. As the method of recovery, tariff structure and categories of consumers to be charged is still uncertain, MERC has asked MSEDCL to submit another detailed plan in a month.