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Now, pay more for power

Updated on: 11 August,2011 07:13 AM IST  | 
A Correspondent |

Consumers will have to shell out up to 25 paise more per unit of electricity after appellate tribunal decision

Now, pay more for power

Consumers will have to shell out up to 25 paise more per unit of electricity after appellate tribunal decision

Next month onwards, you will have to pay 20 to 25 paise more per unit of electricity. An order passed by the Appellate Electricity Tribunal (AET), allows the Maharashtra State Power Generation Company Limited (MSPGCL) to recover Rs 763 crore from its distribution arm, the Maharashtra State Electricity Distribution Company Limited (MSEDCL).


Passing the burden: According the order, the MSPGCL will be allowed
to recover about
Rs 763 crore from the MSEDCL, cost of which will be
passed on to the consumers. Representation Pic


So MSEDCL officials said they would temporarily pass on the burden to consumers, as are were left with no option but to follow the order. "The MSEDCL has no hand in the hike and consumers should understand that it is only the result of an official order in response to an appeal made by another power company.

It is only a temporary arrangement till the amount is recovered in six monthly installments," said a senior MSEDCL official from Mumbai.


The increase will applicable only for six months starting September. The MSPGCL had earlier made several appeals to the state electricity regulator, the Maharashtra State Electricity Regulatory Commission (MERC), which was rejected.

After subsequent appeals, a final order was passed by the AET on July 26, which allowed the hike. The reason, MSPGCL officials gave, is to recover the capital cost incurred on unit 3 of the Paras Thermal Power Plant.


Currently, the authority charges Rs. 2.47 from 0 to 100 units for household consumption. This will translate into a 5 per cent average increase in the monthly electricity bill for a medium-size household.

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