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MERC approves power tariff hike by Maharashtra State Electricity Distribution Company

According to reports, Maharashtra power regulator MERC today approved an overall increase of 16.48 per cent in average tariff charged by state-owned utility MSEDCL.

The revised tariff by the Maharashtra State Electricity Distribution Co that has come into effect retrospectively from August 1, would affect over 2 crore power consumers in the state.

“The Commission has approved an overall increase in average tariff of 16.48 per cent against 17.68 per cent sought by MSEDCL,” Maharashtra Electricity Regulatory Commission (MERC) said in its order.

“The increase in tariff is primarily on account of rise in power purchase expenses, which have gone up primarily due to rise in fuel prices,” MERC said.

MSEDCL, the state power distribution firm, had filed a petition before the Commission seeking approval for average revenue requirement (ARR) for FY2012-13 of Rs 50,750 crore. MERC, however, has approved ARR of Rs 48,926 crore.

As per the revised tariff order, the MERC has increased the fixed charge for below poverty line consumers from Rs 3 per month to Rs 10 while reducing the energy charge from 0.89 paise to 0.76 paise per unit.

For domestic consumers under the category 0-100 units and 100-300 units, the tariff has been revised to Rs 3.36 per unit from Rs 2.82 and from Rs 5 to Rs 6.05, respectively.

For residential consumers under the category of 301-500 units and 501-1000 units, the tariff has been revised from Rs 7.15 per unit to Rs 7.92 and from Rs 8.29 to Rs 8.78, respectively.

MERC has also approved an increase in fixed charge for single phase payable by the residential consumers from Rs 30 to Rs 40 per month, while for three phase, it has been revised to Rs 130 against Rs 100 per month.

For units consumed above 1,000 units, the tariff has been increased from Rs 8.55 to Rs 9.50 per unit.

The Commission has approved an average 7 per cent increase in tariff for non-domestic consumers from Rs 9.15 to Rs 9.78 per unit.

However, the Commission has introduced a provision under which all LT commercial and LT industrial consumers consuming less than 300 unit per month would be allowed to avail tariff as per LT residential category.

“This initiative will ensure hassle-free power supply at affordable rates for people carrying out professional or small commercial activities out of their residential premises and small commercial and industrial units. This provision will benefit about 3.5 lakh consumers,” the order said.

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