After the MERC’s approval, consumers’ electricity bills are likely to rise.
Mumbai: Power tariffs in Maharashtra may increase after the state Assembly elections this year. The Maharashtra Electricity Regulatory Commission (MERC) has permitted the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to recover regulated assets worth Rs 12,000 crores.
Towards this, the MSEDCL is set to submit a multi-year tariff (MYT) petition to the MERC in November. After the MERC’s approval, consumers’ electricity bills are likely to rise.
It is the norm for distribution companies to submit their annual revenue requirement in the form of a petition before the MERC.
Earlier, tariff plans for two years were submitted, which has now increased to five years.
A MSEDCL officer said that the current MYT plan was expiring in March 2020 and MSEDCL was required to file the new MYT plan before 120 days. So, the MSEDCL could file the MYT for the next five years.
MSEDCL chief managing director Sanjeev Kumar said, “The MYT will expire soon, but nothing has been decided yet.”
MSEDCL director for commercial Satish Chavan said, “We have not prepared to file the petition. Yes, it will expire soon.”
According to former public representative in the MERC, Pratap Hogade, “Electricity charges in Maharashtra are high as compared to other states. We have been demanding reduction in charges since many years now. If they still increase tariff, we will agitate against the hike.”
The MSEDCL in 2016 submitted its petition for a Rs 20,000 crore increase in tariff, of which Rs 8,000 crore was permitted.
According to sources, this tariff will be added to the next petition, along with the fresh annual revenue requirement, and the same will reflect in next year’s consumer bills.