Maharashtra: Power tariff for small industries will go up by 40 per cent, says VIA

Vidarbha Industries Association (VIA) has strongly opposed MSEDCL’s power tariff hike petition claiming that the tariff hike for some type of industries will be very high and will lead to their closure. In its submission before Maharashtra Electricity Regulatory Commission (MERC), VIA has claimed that the hike for low tension (LT) having load below 20kW will be more than 40 per cent. The public hearing on the petition will be held on Tuesday.

VIA power expert RB Goenka told TOI that the present tariff for such industries was Rs6.30 per unit. “It will go up to Rs8.98 per unit if MERC accepts MSEDCL’s petition. This translates into a hike of 42.55 per cent,” he said.

VIA has objected to several aspects of MSEDCL’s petition. One of them is the proposal to introduce KVAH billing. Goenka pointed out that despite strong opposition from consumers, MSEDCL wants to introduce this type of billing without providing any reason. “MSEDCL purchases power in kWh but wants to bill its consumer on KVAH basis. This makes no sense,” he said.

The Association has objected to the methodology of calculation of fuel adjustment cost (FAC). It has demanded that MSEDCL levy FAC on the basis of the extra cost incurred that month and not pertaining to three months ago. This upsets the economics of industries.

MSEDCL has proposed sharp hike in demand charges. VIA has pointed out that this will sharply increase the tariff of industries working in one or two shifts. Ideally, MSEDCL should reduce fixed cost component instead of increasing it. A consumer should be billed only for the power he consumes.

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