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    Published On : Sun, Sep 8th, 2013
    Business News | By Nagpur Today samratnt

    VIA ups ante against proposed power tariff hike

    via-energy-cellNagpur News: In view of the anticipated increase in Electricity rates particularly in Vidarbha & Marathwada regions, VIA held a meeting of all categories of Consumers on Saturday  at VIA Hall, for deciding action plan to take corrective measures at different platforms.

    R B Goenka, Chairman VIA Energy Cell, said the basic reasons for increase are;

    i. Business Plan of MSEDCL approved by MERC for the financial year 20-13/14 and 2015/16 which will have direct impact of tariff of MSEDCL for the next three years which will rise to unsustainable limits. This is evident from the fact that MERC has approved costly power purchase of MAHAGENCO though other cheaper options were available. Further, the hearing of this business plan was conducted only at Mumbai in spite of the request of VIA representative to conduct hearing all over Maharashtra.

    ii The industry shall be adversely affected since the night rebate of Rs. 2.5 / unit is applicable upto Sept. 2013 only hence the tariff of industries shall be badly hit resulting into down fall in the growth of industries.

    iii. The electricity duty exemption in Vidarbha & Marathwada is up to March 2014 only and in case it is not extended it will give further rise in the tariff to the tune of 9% and most of the industries in Vidarbha and Marathwada shall closed down.

    The probable impact of all above may give rise to industrial tariff to about Rs. 2.5 unit. All other consumers categories including domestic and commercial shall also be adversely affected by steep rise in the tariff ranging from Rs. 1/- to Rs. 3/- per unit for different categories of consumers.

    Goenka said, presently the industrial consumers are entitled for night rebate of Rs. 2.5 per unit for the consumptions during night from 22.00 Hrs upto 6.00 Hrs. The Commission’s order for night rebate is applicable up to Sept.2013. MSEDCL did not file petition for extension of the night rebate hence there are chances that this night rebate shall be withdrawn. After withdrawing this night rebate the applicable rebate during this period shall be Rs.1/- per unit only hence for three shift consumers the tariff increase shall be about 50 paise per unit and for single shift consumers working during night hours the increase shall be Rs.1.5 per unit

    Further he said, the electricity duty exemption in Vidarbha & Marathwada for industries is upto March 2014 only and in case it is not extended it will give further rise in the tariff to the tune of 9%. The probable impact of all above may give rise to industrial tariff to about Rs. 2.5 to Rs. 3/- per unit. All other consumers categories including domestic and commercial shall also be adversely affected by steep rise in the tariff ranging from Rs. 1/- to Rs. 3/- per unit for different categories of consumers.

    In the current financial year MSEDCL may ask for true up based on the approved business plan since about 6 months has already passed and further 2 to 3 months shall again be required for finalization of new tariff for FY 2013-14 hence by that time the true up amount shall increase and the impact on the balance months of the year may give rise in the tariff to unsustainable limit.

    He suggested that the Electricity tariff in Maharashtra even today is highest in the country and in future it may further rise to unsustainable limits due to all above reasons and industrial consumers shall have no other option either to close down the industry, migrate to other States or to explore cheaper option of economical power through open access. But the eligibility for open access is for 1 MW and above consumers only and further MSEDCL is reluctant to allow open access to consumers.

    Goenka suggested filing a review petition with MERC against approved business plan, to file a case with competition commission of India against tariff in Maharashtra, to request MSEDCL to file petition with MERC for extension of night rebate, to request GOM for extending Electricity duty exemption in Vidarbha & Marathwada, to request MERC to immediately issue open access Regulations and reduce the eligibility criteria upto 300 KVA consumers.

    At the outset, Prafull Doshi, president-VIA welcomed R. B. Goenka, Chairman-VIA Energy Cell, Rohit Agrawal, Hon. Secretary- VIA gave vote of thanks for his valuable guidance and suggestions with his presentation on electricity tariff.

    Other prominent members who were present were Pravin Tapadia, IPP – VIA, Prashant kumar Mohota, Vice President-VIA, Akash Agrawal, Treasurer-VIA, Shailesh Suchak, Joint Secretary-VIA, Gaurav Sarda, Joint Secretary-VIA, Praveen Rander, EC Member, Rakesh Surana, EC Member and other members of different associations.

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