Maharashtra's electricity regulator to set tariff for ten years. | |
| Prayas, the Pune-based think tank working in the field of energy-related issues, has appealed to consumers and consumer right organisations to participate in the process initiated by the Maharashtra Electricity Regulation Commission (MERC) for fixing tariffs of various power utilities in view of the introduction of Multi Year Tariff (MYT), which is going to become much more complex and will have a long term impact. |
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| Now instead of deciding the tariff structure for one year from the financial year 2007-08, MERC will fix a tariff structure for all financial years until 2010. |
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| The state government-owned power utility, the Maharashtra State Electricity, has sought a tariff hike of Rs 3,943 crore for the financial year 2007-08 alone, says a press release issued by Prayas. |
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| The MERC has already initiated the process of scrutinising the MYT applications of three state-owned power utilities "" MSEDCL, Mahagenco and Mahatransco "" and completed technical validation sessions for all the three utilities. |
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| The technical validation of Tata Power Company (TPC) petition is scheduled for hearing on February 8 whereas the date for technical validation of Reliance Energy Limited (REL) petition is yet to be announced. |
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| In the coming weeks these applications and all the data will be made public. The MERC will conduct public hearings on the same. Public hearing on MahaGenco's tariff petition is scheduled for 28 February. |
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| The proceedings and public hearings are very important from consumer point of view as the decisions made during the process would essentially determine tariff for next three years. |
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| MERC will set the trajectory for three years for various performance parameters of the utilities (such as T&D loss, efficiency of a generating plant, and employee costs). |
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| Then tariff will be worked out based on the performance trajectory determined by the commission. |
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| The MYT is a complex tariff structure and is being introduced in the state for the first time. As it envisages setting the performance trajectory for multiple years, it has long term and serious implications on the consumer tariff. |
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