Published On : Tue, Jan 21st, 2014

GOM Declaration On Reduction In Power Tariff In Maharashtra Is Only 6% And Not 20%

Electricity

Nagpur News: The GOM declared 20% rebate in power tariff in Maharashtra excluding Mumbai which is simply eyewash and in real sense is not a reduction in tariff. The reduction in tariff as per declared tariff is only 6% but it can be further reduced to 18% in the same subsidy of Rs. 700 crores per month declared by Govt. of Maharashtra informed Press Release by  R. B. GOENKA,Consumers Representative, VIA.

Goenka further added that MSEDCL started collecting AEC & FAC charges from the month of Aug. itself and as per Commissions order these charges are to be collected upto Jan.2014 excluding AEC2 which would have been continued upto next tariff revision.

From Feb.2014 only AEC2 which amounts to Rs. 235.39 crore shall be collected by MSEDCL as per Commissions order and in case GOM subsidizes this amount, the reduction in tariff due to GOM subsidy from Feb.2014 shall be only to the tune of about 6% and not 20% as has been propagated.

As per the reports, State Govt. shall provide Rs. 606 crore and balance Rs. 100 crore will be shared by Mahavitaran and Transco. As per declared reduction the subsidy requirement is only to the tune of Rs. 235.39 crores. If such is the case then there shall be extra subsidy amounting Rs.606 + 100 – 235.39 (for AEC2) = 470.61 crore received by Mahavitaran. By this amount the tariff can further be reduced by about 12% beyond the declared reduced tariff from the month of Feb.2014, which is still highest in India after the declared reduction.

Commission allowed an amount of Rs. 106.44 crore and 628.9 crore totaling to Rs. 735.34 crore to be collected from consumers in 6 months from Oct.2013 vide order in case No.28 of 2013 dt. 3/9/2013. MSEDCL started collecting these charges as AEC3 from August 2013 as per circular 209 dt. 7/9/2013

Hon’ble Commission issued order in case No. 44 of 2013 dt. 4/9/2013 and allowed fixed charges of Rs. 596.12 crores to be paid by MSEDCL to MSPGCL for FY 12-13 and to be paid in six equal monthly installments from Oct. 2013 onwards. MSEDCL started collecting these cost as AEC4 from month of August 2013 as per circular 209 dt. 7/9/2013.

As per Commissions order in case No. 95 of 2013 an amount of Rs. 2037.78 Crore was to be collected from consumers in 6 months from Sept. till Feb.14 as AEC1. MSEDCL started collecting these cost as AEC1 from month of August 2013 as per circular 209 dt. 7/9/2013.

Further Commission allowed MSEDCL to collect Rs. 235.39 crore monthly from consumers starting from Sept. 2013 as AEC2. As per Commissions order in case No. 95 of 2013 MSEDCL started collecting these cost as AEC2 from month of August 2013 as per circular 209 dt. 7/9/2013.

MSEDCL in its circular 209 dt. 7/9/2013 said that as per MERC different orders the impact of variation in all the variable charges of MSPGCL are being recovered through FAC. As per MSEDCL the total amount is Rs. 920 crore being recovered through FAC.

MSEDCL started collecting all above charges from the month of August 2013 itself inspite of the fact that those were to be collected from Sept. & Oct.2013. VIA and other consumers filed case with MERC against this violation but MERC did not issue a clear order and matter is kept pending.

The collection of additional energy charges, applicability period and charges to different categories of consumers is as below.

AEC charges were not applicable to consumers of other licensee in Mumbai hence there is no reduction in tariff for consumers in Mumbai.

 

DETAILS AEC1 AEC2 AEC3 AEC4 Add.FAC TOTAL PER MONTH
Amount to be recovered in Rs. Cr.

2037.78

235.39 per month

735.34

596.12

920

950.2633

Period of Recovery 6 Months Upto next tariff 6 months 6 months 6 months
Months of Recovery as per MERC order Sept.to Feb From Sept. Oct. to March Oct. to March Oct. to March
Amount recovered by MSEDCL in months Aug.to Jan From Aug. Aug.to Jan Aug.to Jan Aug.to Jan
AEC & FAC Charges in paise / unit for different categories of consumers
Domestic – LT-1
BPL 0-30

9.56

7.74

1.28

3.01

2.23

23.82

1-100

31.27

25.29

4.19

9.85

9.86

80.46

101-300

52.65

42.58

7.05

16.59

17.75

136.62

301-500

65.75

53.17

8.81

20.71

23.24

171.68

501-1000

71.38

57.72

9.56

22.49

25.76

186.91

Above 1000

76.36

61.75

10.23

24.06

27.88

200.28

Non Domestic – LT-2
0-20 KW
0-200 Units

56.83

45.96

7.61

17.9

17.17

145.47

Above 200 units

87.53

70.79

11.73

27.58

24.59

222.22

LT Industries (LT 5)
0-20 KW

42.76

34.58

5.73

13.47

14.85

111.39

Above 20 KW

68.4

55.32

9.16

21.55

20.57

175

HT Category
HT 1 (Express feeder)

61.73

49.92

8.27

19.45

20.57

159.94

HT 1 (Non express feeder)

58.35

47.19

7.82

18.39

18.57

150.32

 

According to the state cabinet’s decision, a high-tension industrial power consumer drawing power from an express feeder will have to pay Rs 7.01 a unit against the present tariff of Rs 8.61 a unit, the difference is Rs. 1.6 which is nothing but AEC & FAC charges as per above table.  This tariff would have reduced in Feb.14 to Rs.7.50 without any GOM support. 

A non-express feeder high-tension power user will have to pay Rs 6.33 a unit against Rs 7.83 a unit, the difference is Rs. 1.5 which is nothing but AEC & FAC charges as per above table and this tariff would have been reduced in Feb.14automatically to Rs.6.80 without any GOM support.

For residential consumers with 0 to 100 units, the tariff has been reduced to Rs 3.36 per unit from Rs 4.16 a unit, the difference is Rs. 0.8 which is nothing but AEC & FAC charges as per above table and this tariff would have been reduced in Feb.14 automatically to Rs.3.61 without any GOM support.

 For 100 to 300 units Rs 6.05 a unit from Rs 7.42 a unit, the  difference is Rs. 1.37 which is nothing but AEC & FAC charges as per above table and this tariff would have been reduced in Feb.14 automatically to Rs.6.48 without any GOM support.

 As per calculations Mahavitaran is getting extra subsidy Rs. 470.61 crore.  By this amount the tariff can further be reduced by about 12% beyond the declared reduced tariff from the month of Feb.2014 as detailed given above.

 As has been submitted by VIA to Rane Committee, there has to be a permanent solution by controlling cost of purchase of power by avoiding high cost power of Genco and 100% utilization of Indian coal for generation by Genco.