Navi Mumbai, Thane power bills to increase

The power tariff in the state will go up by 20 to 25 paise per unit for the next six months. The increase will affect 1.5 crore consumers across the state, including 30 lakh consumers in Thane, Navi Mumbai, Kalyan-Dombivli and rest of Mumbai metropolitan region.

The Maharashtra Electricity Regulatory Commission (MERC) on Tuesday allowed the state-run Maharashtra State Power Generation Company Limited (MSPGCL) to recover around Rs 764 crore from its sister concern-the Maharashtra State Electricity Distribution Company Ltd (MSEDCL). The MSEDCL will eventually recover the money from consumers through monthly bills.

A major amount of the recovery is towards capital expenses over rejuvenating power units in Parali and Paras. A sum of Rs 340.9 crore is the difference of the 2007-08 budget which the MSPGCL had demanded earlier.

In all the cases, MERC had initially refused to allow the recovery. Later, the MSPGCL approached the appellate tribunal for electricity (ATE) which subsequently asked MERC consider the proposals and derive an appropriate mechanism to recover the cost.

On Monday, the MSPGCL levelled charges against the MERC for withholding its several financial claims. leading to a crunch in the company. MERC had countered the blame saying that MSPGCL was not responsible enough to reveal the rate of interest on the loans drawn by it for the expansion of power projects.
 
 
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