Power regulator allows RInfra to recover Rs 2,300 cr

The Maharashtra Electricity Regulatory Commission (MERC) on Wednesday permitted the distribution business of Reliance Infrastructure (RInfra) to recover as much as Rs 2,300 crore from its customers.

The amount was accumulated due to staying of tariff order and adjustment of various costs in the process of review by MERC between 2004-05 to 2010-11. The recovery mechanism is yet to be decided by the regulator. Regulators are in the midst of coming out with a regulation in this regard, and they have already conducted extensive public hearings on the same, though increase in rates could be one of the methods. This recovery could happen over the next five-six years.