Published On : Tue, Dec 23rd, 2014

Jolt to common man, Power tariff to rise from this month

Consume more, pay more

powerNagpur: This month onwards, the power bills of common man is expected to rise by 20 per cent, giving a severe jolt to domestic consumers. The Maharashtra government has cancelled the subsidy on power to the tune of 614 crore for domestic consumers, while continuing with the subsidy to agricultural consumers and industries. The government will shell out 489 crore from its coffers to continue with the subsidy of agricultural and industrial consumers.

The Maharashtra Electricity Regulatory Commission (MERC) had give a clearance to MSEDCL to increase the power tariff by 20 per cent in March last year. To save the consumers from this decision, the erstwhile Maharashtra government had decided to give monthly subsidy to the industrial consumers.

For the domestic consumers, those consuming less than 300 units per month were given subsidy, the total amount of which was 06 crore. This included the subsidy to agricultural consumers of 92 crore. These funds were credited to the account of MSEDCL. Because if this, the common man did not have to bear the burden of high electricity bills.

However, in the month of August, the government failed to deposit the fund in the account of MSEDCL because of which the power distribution agency was continuously demanding the same.

When the BJP government came to power in the State, a demand to cancel the subsidy was raised.

The pressure was more as the financial position of the State was in doldrums. In this background, the state government has decided to continue the agricultural consumers subsidy of 92 crore while cancelling the 614 crore subsidy.

Looking at the opposition and criticism of this move, the government has now decided to continue with the agricultural subsidy of 92 crore and 397 crore industrial subsidy, a total of 489 crore subsidy.
Those consuming power between 0 to 100 units will have to pay at the rate of 4.16 per unit, while those using power between 101 to 300 units per month will have to pay at the rate of 7.42 per unit. Previously, the rates per unit of consumption was 3.36 per unit and 6.05 per unit respectively.

For industrial consumers, power from express feeder at the rate of 7.01 per unit and from non express feeder at the rate of 6.33 per unit. After the cancellation of subsidy, this rate will go up by 8.61 per unit and 7.83 per unit.