MERC to Conduct Hearing on MSEDCL Petition Today
The Maharashtra Electricity Regulatory Commission (MERC) will conduct a public hearing on MSEDCL’s power tariff proposal in the city on Tuesday. The hearing will take place at Niyojan Bhawan, located behind Sadar police station, starting at 10:30 am. While MSEDCL has stated in its petition that electricity rates will be reduced for consumers, experts and consumer groups argue otherwise. They believe that if MERC approves the proposal, power tariffs are likely to rise in the coming years.
According to a media report, the Vidarbha Industries Association (VIA) has strongly opposed the proposed power tariff hike, highlighting the disparity in electricity rates. It pointed out that Mumbai-based power suppliers, Adani Power and Tata Power, offer cheaper electricity to industries compared to MSEDCL. Additionally, power tariffs in neighboring states are lower, putting industries in Vidarbha at a competitive disadvantage. VIA also raised concerns about Mahagenco purchasing domestic and imported coal at high prices, with the financial burden ultimately being passed on to consumers through MSEDCL.
RB Goenka, former director of MSEB Holding Company, has called on MERC to suspend MSEDCL’s distribution license, citing serious mismanagement. He has also urged the commission to consider the petitions of Adani Power and Torrent Power, allowing them to distribute electricity in certain areas of the state.
Goenka accused MSEDCL of repeatedly ignoring MERC’s directives and operating with flaws typical of a monopoly. He noted that auditors flagged its lack of creditworthiness, and MERC had fined it ₹1 lakh for violating orders. Consumer activist Anil Wadpalliwar also pointed out MSEDCL’s failure to recover pending dues.
The arrears have crossed ₹90,000 crores, with most of it owed by farmers. Since recovering dues from them is difficult, MSEDCL should request the state government to waive these bills gradually to prevent extra burden on other consumers. Wadpalliwar also noted that despite anti-power theft drives, many areas still face high distribution losses. He demanded that MSEDCL officials in these areas be penalized and the excess loss amount be recovered from them.
The Vidarbha Taxpayers’ Association (VTA) has raised concerns over the proposed changes in Time of Day (ToD) billing, stating that it will increase electricity costs for large consumers. While they would get a ₹2.15 per unit discount for power used between 9 AM and 5 PM, they would have to pay extra, ranging from ₹1.65 to ₹20.90 per unit, during the remaining 16 hours. Additionally, the new ToD structure would reduce the benefits of solar power for large users from 20 hours to just 8 hours.
The All India Renewable Energy Association (AIREA) has strongly opposed several changes in MSEDCL’s proposal. These include higher bills for solar consumers, grid support charges, KVAH billing for LT consumers, increased fixed charges, and the need for a separate temporary meter for building renovations. AIREA also criticized the new method of calculating bulk consumption, stating that these changes would burden consumers.
VIA pointed out that Mahagenco was buying domestic and imported coal at high prices, passing the cost onto consumers through MSEDCL. Meanwhile, AIREA demanded that the incremental consumption rebate be given to all consumers and that the load factor incentive be extended to all categories.
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