Blackouts in Pune likely from April 5

Pune may face power cuts from April 5 unless a franchisee is appointed to look after the power distribution in the city following an order of the Maharashtra Electricity Regulatory Commission (MERC) on Monday.

The city has not faced power cuts since 2006 following an initiative by the Confederation of Indian Industry (CII) on the basis of which the power regulator allowed Mahavitaran to buy captive power generated by the industry in Pune.

Since captive power is expensive, Mahavitaran was allowed to collect the reliability charges from consumers.

But since the order was passed in 2006, the gap between power generated through captive generation and actual demand has increased and Mahavitaran was adjusting it through grid.

However, the power regulator objected to this practice and asked Mahvitaran to explore the possibility of appointing a franchisee to arrange additional power as per requirement and also look after the city's power distribution.

Following which early last week, CII and Marhatta Chamber of Commerce Industries and Agriculture (MCCIA) moved an application before the MERC, claiming shortage of 100 Mw can be met only if Mahavitaran is allowed to buy power from TPC at Rs 12 per unit.

Passing the order on CII and MCCIA's application, the regulator observed that power bought by the Mahavitaran at a higher rate has to be equitably distributed throughout the state and can not be utilised by Pune only.

However, MERC has suggested that a franchisee can be appointed by the Mahavitaran exclusively for Pune, who will be free to arrange power for Pune.

Mahavitaran expressed its inability to immediately appoint interim franchisee and said, whether the power is to be bought at Rs 12 or not is to be decided by the citizens of Pune and MERC, the utility has now no option but to resort to power cut.