Nagpur: Amid raging debates over soaring power tariffs, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has sought to clarify its stance. The company assured consumers that electricity rates would gradually decrease over a five-year control period, as outlined in its tariff petition submitted to the Maharashtra Energy Regulatory Commission (MERC). MSEDCL emphasized that the tariff adjustments are structured to bring relief over time, countering concerns about escalating electricity costs.
In case the proposal put up by the distribution company gets accepted, then the tariff will be reduced by the end of the control period across all sectors, households, small businesses and also industries. Additionally, it mentioned that post acceptance of the new tariff proposal, the power rates for industries will become competitive and they will be at par with other leading industrial states.
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04 April 2025
In short, this is a candid admission on part of the State-run power company that its current tariffs are on a higher side compared to neighbouring states. The same point has been made repeatedly by consumer activists, while MSEDCL remained in denial. However, while responding to claims about the new tariff petition, MSEDCL mentioned that over the next few years, it proposes to reduce the power tariff.
The official side contended that the statements in the media on part of various organisations are not based on facts and only assumptions. For example, as to a proposal about reduced tariff for higher usage during the day time, the Discom mentioned that the same would be beneficial for small business, offices and mostly industries having day time working hours. It also scotched suspicion among consumers, particularly households, who opted for rooftop solar units, that there would be no changes in calculation of banking of surplus power.
The activists, particularly entrepreneurs in the solar sector, said that plain reading of MSEDCL tariff petition reveals a proposal to reduce the set off of power generation to just 4 hours. MSEDCL mentioned that there is no proposal for changes in the household category of solar power generation vis-a-vis net metering policy. The Discom also clarified that minor construction work of modification to existing housing units would not attract commercial tariff, albeit if old house is demolished and a new one is being constructed thereon, then temporary LT (non domestic category) would need to be installed.
Same is proposed in the current tariff petition and it seems the power men have taken into account that at many places old homes are being demolished to make way for swanky new towers and hence, eyeing to cash in on the boomin redevelopment projects across the State. MSEDCL also stated that it’s not possible to bill any consumer with solar installation for over and above the power generated in lowest tariff as the same would increase cross subsidy load.
All India Renewable Energy Association had sought that consumers having 3.5 kW solar units used about 350 units then they should be billed at 1-100 units rate. About the FAC device, the Discom said, the same is meant for industrial units having over 20kW solar installation as the same would help in improving power factor that entail many concessions. Also, for MSEDCL, it would help in stabilising the voltage in the system helping keep the grid stable.
