Mumbai: The expected relief for electricity consumers in Maharashtra from April 1 has been put on hold. The Maharashtra Electricity Regulatory Commission (MERC) stayed the proposed tariff reduction after the Maharashtra State Electricity Distribution Company Limited (MSEDCL) raised objections.
Instead of cheaper power, MSEDCL has now made electricity costlier for consumers by introducing a fuel adjustment charge (FAC) of up to 60 paise per unit. The FAC, effective for March consumption, was announced via a circular issued on April 1, citing MERC’s order dated March 30, 2020.
According to MSEDCL, the extra burden is due to expensive electricity purchases made last year during the summer and monsoon seasons, when local power generation dipped and demand surged. To recover these costs, MSEDCL has imposed the FAC across all consumer categories.
The revised per-unit charges under the FAC are as follows:
- Domestic consumers: Up to 60 paise
- Commercial: 40 to 60 paise
- Agricultural: 15 to 30 paise
- Street lights and water supply schemes: 30 to 35 paise
- EV charging stations: 40 paise
- Industries: 35 to 40 paise
While the circular specifies the FAC is applicable only for March’s consumption, MSEDCL sources indicate that additional collections may continue in the coming months due to ongoing high procurement costs.
As of April 7, the state’s electricity demand has neared 30,000 MW, with Mumbai alone consuming 3,753 MW. In contrast, local production, including from private operators, stood at 18,503 MW, forcing the state to rely heavily on the central power quota and electricity exchanges to meet the shortfall.
Compounding the issue, one unit each at Chandrapur, Khaparkheda, and Bhusawal power plants remains shut, further pressuring MSEDCL to buy costlier electricity from external sources