Maharashtra industry consumers protest against high power tariff

Say tariff in the state is higher by up to Rs 2.50 a unit compared to other states

High-tension industry consumers in Maharashtra (those whose consumption exceeds 100,000 units a month) are protesting against high power rates. They argue the rates charged by state-run Maharashtra State Electricity Distribution Company (MahaVitaran) are Rs 2-2.5 a unit more than the rates in other states.

According to the latest data available with the Maharashtra Electricity Regulatory Commission, the state has the highest per-unit rate of Rs 8.82, followed by Delhi (Rs 6.64), Tamil Nadu (Rs 6.04), Jharkhand (Rs 5.82), Karnataka (Rs 5.56), Chhattisgarh (Rs 5.46) and Odisha (Rs 4.95).

Of MahaVitaran’s 22.1 million consumers, 312,000 are industry consumers. And, 12,000 of these are high-tension ones. MahaVitaran collects about Rs 10,000 crore annually from these high-tension consumers to cross-subsidise agricultural consumers. Of the total dues of Rs 8,000 crore from farmers, the power distribution company has sought Rs 3,800 crore from the state government.

R B Goenka, chairman (energy cell) of the Vidarbha Industries Association, told Business Standard, “In the current environment, the tariff has increased to unsustainable limits. It will become difficult for industries to use such high-cost energy to run. Industries have to be shut because power in neighboring states is much cheaper; industries in Maharashtra cannot compete with industries in neighboring states.”

A MahaVitaran official said for industry consumers, the company was offering a rebate of Rs 2.5 a unit during nights.

Meanwhile, the state government has formed a Cabinet-level sub-committee headed by industries minister and former chief minister Narayan Rane to suggest ways to lower the rates.