Maharashtra Electricity Regulatory Commission refuses open access to industries

 Industrialists in the state are completely dismayed by the decision of Maharashtra Electricity Regulatory Commission (MERC) to turn down applications of several industries seeking permission to buy power from Indian Electricity Exchange (IEX). It has refused to renew the open access (OA) permits of five industries.

MERC has upheld the contention of MSEDCL that it will face operational and financial difficulties if industries were granted OA through IEX. These difficulties need to be addressed before OA can be allowed through exchanges. It claimed there was no specific provision in MERC OA Regulations to allow purchase of power through exchanges.

Twenty-nine industries had filed petitions in MERC either seeking OA or complaining about MSEDCL’s unwillingness to grant the same. All of them have been rejected.

The industrial power tariff of MSEDCL is one of the highest in the country. The industries find buying power from exchanges cheaper. MSEDCL contends that if subsidizing consumers start buying power from elsewhere, then the entire tariff structure will collapse and it will be forced to increased the tariff of common consumers.

MSEDCL officials have been unofficially telling the media that soon after parliamentary elections several states will go in for sharp revision of power tariff as their discoms are in very bad shape. They claim that their power tariff will come at par with other states after this revision.

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Source: TOI



Executive at India Electron Exchange

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