Published On : Tue, Mar 31st, 2020

VIA welcomes tariff order of Commission

Commission has issued a very good and balanced tariff order in which VIA’s suggestions are 100% incorporated.

As against additional requirement of 60313 crores projected in petition of MSEDCL which was almost 13 % increase in total ARR (Annual Revenue Requirement), commission has determined negative i.e. minus 22242 crores which ultimately resulted in reduction of tariff to the tune of 5% reduction in residential category, 12% reduction in commercial category, 10% reduction in LT & EHV industries.

Grid support charges for Roof top solar are zero. VIA has calculated and submitted for negative grid support charges and suggested for banking charges for exported energy against MSEDCL proposal of Rs. 3 to Rs. 4.5 per unit. MERC has decided zero grid support charges and banking charges in kind 7.5% for HT industries and 12 % for LT industries for banked energy.

Further Three months moratorium period has been provided for paying demand charges under the circumstances of lockdown of industries due to COVID-19.

Commission has accepted VIA proposal for bringing stability in FAC charges and has created a fund for FAC based on 3% rise in fuel cost annually. This move shall stabilize the FAC charges.

With respect to suggestion of VIA for forming separate agriculture company commission said that this matter shall be dealt separately.

Vidarbha & Marathvada incentives are based on the consumer’s efficiency depending on power factor (PF), load factor (LF) & prompt payment discount consumers are availing, but because of KVAH billing for HT consumer power factor rebate shall not be provided. Hence there is a need for revision in the formula of Vidarbha Incentives. VIA shall take up this issue separately with Government of Maharashtra.

VIA welcomes this tariff order of commission which will help industries in this difficult period.