Power price cut on Maharashtra Cabinet agenda

Govt has options include giving directions to MERC under Sections 48 and 108 to issue a revised rate order

The Maharashtra government is weighing at least three options to reduce power rates here. The state Cabinet is expected to take up the proposal on Wednesday.

The options include giving directions to the Maharashtra Electricity Regulatory Commission (MERC) under Sections 48 and 108 to issue a revised rate order; giving subsidy to private distributors, mainly Tata Power and Reliance Infrastructure; and ordering an audit of these firms. Besides, the government will hold a meeting with discoms to approach the regulator for a rate revision.

Tata Power has a consumer base of 450,000, while Reliance Infrastructure supplies power to 2.8 million. BrihanMumbai Electric Supply and Transport has over one million consumers.

Chief Minister Prithviraj Chavan held a meeting with officials to examine these options. Chavan’s move comes on the heels of a hunger strike (now called off) by Congress MP Sanjay Nirupam, demanding reduction in the rate charged by Reliance Infrastructure.

Nirupam has demanded that wheeling charges and regulatory assets charges recovered by Reliance Infrastructure should be drastically reduced. He has been seeking relief in tariff for consumers having monthly consumption up to 500 units.
 
State cabinet is expected to take up the proposal in this regard at its meeting slated for Wednesday. The state cabinet has already taken a decision on 20% cut in tariff charged by the state r-un Maharashtra State Electricity Distribution Company (MahaVitaran) to its 21.4 million consumers.

 
Besides, Nirupam and other Congress leaders and the opposition Shiv Sena are demanding reduction in the tariff charged by Reliance Infrastructure. Incidentally, no political party or any organization have raised voice against tariff charged by Tata Power or BEST.
 
Incidentally, Reliance Infrastructure in its release has already clarified that the tariff is determined by the Maharashtra Electricity Regulatory Commission as per the provisions of Electricity Act, 2003.