Industry bodies to observe bandh on Oct 25 against high tariff

Threaten to stop payment of electricity bills if no action is taken by state govt MahaVitaran and MERC

Industries in Maharashtra have protested against the high power tariff saying they can't be further burdened to  cross-subsidise agricultural consumers. They have decided to observe a bandh on October 25 and threatened to stop payment of electricity  bills if no action is taken by the state government, the Maharashtra State Electricity Distribution Company (MahaVitaran) and Maharashtra Electricity regulatory Commission (MERC).

In view of the recent tariff revision approved by MERC, the tariff of high-tension consumers has surged to Rs 8.50 per unit compared to Rs 5.75 to 6 in Karnataka, Rs 5 to 5.30 in Gujarat, Rs 4.50 to 4.80 in Chhattisgarh. There are 17,587 high tension consumers, 3,35,157 low-tension consumers and both together make up 1.6 per cent of MahaVitaran's total consumers which are almost 12.3 million. Besides, these consumers contribute Rs 29,645 crore of revenue, or 61 per cent of MahaVitaran's total revenue.

RB Goenka, chairman, energy cell, Vidarbha Industries Association told Business Standard "MERC has increased the tariff six times in 2009-10 and seven times after current tariff decided for 2010-11. The industry consumers are facing difficulty due to unsustainable  tariff and cannot even calculate their cost of production. The actual increase in recent tariff rise approved by MERC is 40 per cent." He said industry bodies have appealed to the state government to direct MahaVitaran to do 100 per cent meterisation including for agriculture consumers and make subsidy provisions for industrial consumers  for making tariff sustainable. According to him, the state government needs to provide direct subsidy to farmers instead of giving it to MahaVitaran.

Further, industry bodies have called for providing separate feeders to industrial consumers in single phasing areas.

Rajesh Tope, state power minister admitted that the industry tariff was high. However, it was due to incentives and disincentives offered under the power factor and load factor categories to the industry consumers.  "Besides, MahaVitaran had offered rebate of Rs 2.50 per unit during off peak period (during night). MERC however, has allowed rebate of one rupee per unit but during next hearing on November 9 MahaVitaran will press for a rebate of Rs 2.50 per unit which will provide relief to industry consumers," the minister noted.

Tope informed that the charge payable  by industry consumers to MahaGenco (Maharashtra State Power Generation Company) has been reduced by 50 paise in October and it will also be reduced by another 50 paise in November. This would give a relief of one rupee per unit. "I am ready for a dialogue with industry bodies to look into their issues," he said.