MSEDCL’s tariff hike plan under fire

PUNE: The tariff hike proposal of the Maharashtra State Electricity Distribution Company Limited drew flak on Wednesday during a public hearing.

Consumers and experts pointed out several gaps and lack of transparency in the proposal in the hearing conducted by the Maharashtra Electricity Regulatory Commission.

Sales migration to open access, captive and renewable sources is inevitable and Maharashtra State Electricity Distribution Company Limited (MSEDCL) needs to evolve a new business model to accommodate this changing reality, said Prayas energy group during the hearing. “One approach to mitigate this impact would be to have separate tariff structures for large consumers who are eligible for open access (i.e., consumers with a connected load above 1MW) but choose to stay with the company for at least one or two years,” the group suggested.

Ashwini Chitnis of Prayas said that besides the revenue requirement of Rs 59,000 crore put in by the distribution company in its multi-year tariff proposal, consumers will need to brace themselves for coughing up another Rs 53,000 crore in the next five years.

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