Shocker to electricity consumers in new FY

Chhatrapati Sambhajinagar: Come April, residential and commerical consumers will have to pay hiked electricity bills. The Maharashtra State Electricity Distribution Company (MSEDCL) has filed its mid-term tariff revision petition before Maharashtra Electricity Regulatory Commission (MERC), citing the main reason for the tariff hike is the increase in the cost of thermal power.

This tariff hike will affect all those who use electricity, including residential and commercial consumers. The MERC held a hearing on the objections. This means all electricity consumers in the city are likely to shell out more on electricity bill from the next financial year (April 1).

It was stated in the petition that the tariff hike is Rs 2.55 per unit, that is 37 percent, for the next two financial years to cover the revenue deficit.

Vishwas Pathak, the Independent Director of MSEB Holding Company calimed the reports about proposed the 37 percent hike in electricity rates is incorrect.

He said that Mahavitaran has proposed an average tariff increase of 14 per cent and 11 per cent per year in the two financial years 2023-24 and 2024-25 respectively to recover the revenue deficit of six years. He said that the proposed average tariff increase includes fixed charges, power charges and transmission charges.

He said that the revenue estimated for the power company by the Commission while approving the tariff structure for the financial year 2020-21 was not collected due to various reasons including Covid outbreak and coal crisis.

“As a result, considering the revenue deficit in the last four financial years and the expected deficit in the next two financial years, Mahaveetran submitted a proposal for electricity tariff hike to compensate for the six years of deficit,” he asserted.

Urja Manch president Hemant Kapadia said that if the 37 per cent hike is implemented, the residential and commercial consumers would be burdened heavily.

“The industries which have signed an agreement for years to supply products on a certain price, will be hit badly from the traiff hike. Their products manufacturing cost will increase while sale cost will be low due to agreement,” he said. Kapadia said that the State has the highest electricity traffic compared to neighbouring States.

Shaikh Shareque, a domestic consumer said that a common man is already burdend with soaring inflation. “The 37 per cent hike in electricity bill is like adding a fuel in the fire. Many people were rendered jobless and profits of small vendors has gone since Covid outbreak

This may resulting breaking back of a common man," he said.

He said that the Government in Delhi is giving free electrcity upto 200 units for poor people.

"In our State, consumers will have to pay more money for electrcity bill. Poor get poorer because of the rise in bill and inflation,” he added.