Nagpur: Citizens representing all sections of society in one voice strongly opposed the 37% power tariff hike proposed by Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 2023-24. The MSEDCL on the other hand claimed that the proposed hike was only 14%.
A public hearing on Mid-Year Tariff petition of MSEDCL conducted by Maharashtra Electricity Regulatory Commission (MERC) was held on Friday at Vanamati Hall for Nagpur Division. From this year onwards, MERC has altered the public hearing plan from open forum to e-hearing. The administration had made arrangements for people, representatives of organisations and associations.
Gold Rate
24 April 2025
At the outset, officials of MSEDCL outlined their viewpoint as to Mid-Term review tariff petition for truing up of accounts for FY 2019-20, FY 2020-21, & FY 2021-22. Provisional true up for FY 2022- 23 and Revised Projections and Tariff For FY 2023-24 to FY 2024- 25. MERC had listed it as Case No. 226 of 2022.
Highlighting the increased cost of production and bank interest rates, the proposed electric tariff hike by MSEDCL will lead to the closure of various micro and small scale industries stated Shashikant Kotharkar, Secretary, Butibori Manufacturers Association (BMA). The increased cost will also lead to shifting of industries to neighbouring State of Chhattisgarh, mentioned Kotharkar as there the power tariff is more competitive.
Similarly, R B Goenka representing VIA claimed that there is error in MSEDCL petition as to power purchase expenses and transmission charges are not based on the facts since they were not approved by the Commission and still included in expenditure. Members of Vidarbha Industries Association (VIA) said the tariff hike is not justified. They raised the issue of conversion of tariff of consumers from continuous to non continuous tariff seeking the revenue impact on MSEDCL and ultimately which was passed on to consumers.
Also, VIA said, MSEDCL be directed to separately submit the impact of changing the tariff category of consumers prior to issue of order by Commission in case no. 94 of 2015 for those who have not applied within one month of tariff order but MSEDCL suo motu changed the tariff category.
Tejram Ukey, Bestech Hospitality, stated that the hospitality industry should be charged under the industrial rates tariff. A GR has been issued by the State Government about the same and MSEDCL should implement the same at the earliest.
Terming coal import to be one of the major reasons for the deficit in MSEDCL books, former Corporator Praful Gudadhe-Patil mentioned that the profits and losses should be managed like any other company. The consumer should not be burdened with additional charges and rate hike. He also raised the issue of Integrated Road Development Project (IRDP) that was implemented in Nagpur city. Though charges were levied on customers, all electric poles have not been removed or moved from the carriageway. Though today’s hearing was a public affair, no proper publicity was made by MSEDCL reducing it to a private affair and in a democracy without involvement of citizens in decision making, that too when they are going to be hit hard by inflated rates, is not in good taste, he added further.
Mahendra Jichkar while listing objections to the new tariff compared it with old rates and mentioned how it will disturb the household budgets as the hike would range from 25.90 per cent to 34.22 per cent as per the consumption pattern. Jichkar also reviewed the applicable tariff for the last four years, effect of fuel adjustment charges (FAC) and said if the MSEDCL petition is accepted at its face value, Maharashtra would have the highest tariff amongst the neighbouring States.
He suggested measures like reduction of tariff for industrial customers, introduction of additional slab under tariff plan for non domestic category, schemes for reducing arrears, target oriented detection of thefts and recovery, 1% reduction in power purchase that will result in saving of Rs. 750 crores, controlling distribution losses, utilisation of MSEDCL infrastructure and use of nonconventional methods in Government offices to boost the revenue of MSEDCL.
