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Sunday, August 19, 2012

MERC approves power tariff hike by ~16.5% to be charged to end consumers...
Positive in short to medium term for Tata Power Ltd & Reliance Power Ltd
The Maharashtra Electricity Regulatory Commission (MERC) has approved the tariff hike proposed by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). The revised tariff will see an overall increase of ~16.5%. The average tariff hike, however, works out to ~6.91% for consumers, taking into account existing additional energy charges and Fuel Adjustment Cost. The revised tariff by the MSEDCL will come into effect retrospectively from August 1. As per the revised tariff order, the MERC has increased the fixed charge for below poverty line consumers from Rs.3 per month to Rs.10 while reducing the energy charge from 0.89 paise to 0.76 paise per unit. For domestic consumers under the category 0-100 units and 100-300 units, the tariff has been revised to Rs.3.36 per unit from Rs.2.82 and from Rs.5 to Rs.6.05, respectively. For residential consumers under the category of 301-500 units and 501-1000 units, the tariff has been revised from Rs.7.15 per unit to Rs.7.92 and from Rs.8.29 to Rs.8.78, respectively. MERC has also approved an increase in fixed charge for single phase payable by the residential consumers from Rs.30 to Rs.40 per month, while for three phase, it has been revised to Rs.130 against Rs.100 per month. For units consumed above 1,000 units, the tariff has been increased from Rs.8.55 to Rs.9.50 per unit. The Commission has approved an average 7% increase in tariff for non-domestic consumers from Rs.9.15 to Rs.9.78 per unit. The increase in tariff is positive in short to medium term for Tata Power Ltd and Reliance Power Ltd from short to medium term perspective.
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