KSEBOA - KSEB Officers' Association

Maharashtra government stayed the MERC order lowering tariff for commercial users like malls and theatres and increasing tariff for other smaller users. Maharashtra Electricity Regulatory Commission has done this in accordance with Electricity Act 2003 and Tariff policy which advocates reduction of cross subsidy.

" The State Government has decided to stay MERC's order dated August 17, using powers under section 108 of Indian Electricity Act-2003, which gives power to state Government to give policy directions to SERC." Energy Minister Sunil Tatkare told reporters. "There is no point in lowering tariff for those who use maximum power for commercial use and increasing tariff for small users," Tatkare said. The decision to stay the MERC order is being taken 'keeping in view public interest at large,' he said.

"The per unit charge for large commercial consumers, which was Rs 8 earlier, has been reduced by three per cent to Rs 7.76, while the tariff for categories like public water supply schemes has been increased by 4 per cent, from Rs 2.19 earlier to Rs 2.27," the minister said.

There is a mismatch in power demand and supply situation in the state but it was expected to be normalised by December 2012, he said.

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Sandeep N. Ohri

September 03, 2009

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The MInister should get his facts right - reduction in cross-subsidy has been mandated by the Electricity Act 2003 and the National Tariff Policy - and is OUT of the purview of the MERC.

The MERC has NO choice but to lower cross-subsidy as much as they can. THe NTP recommends a max limit of +/- 20% from cost of supply.

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