MERC okays 42 paise RC for PuneOur Regional Bureau / Pune May 17, 2006The Maharashtra Electricity Regulatory Commission (MERC) has okayed collection of 42 paisa per unit as reliability charges (RC) from consumers in Pune to ensure they get 24x7 power supply.The commission, however, has excluded all domestic consumers whose consumption is less than 300 units per month and directed Maharashtra State Electricity Distribution Company (MSEDCL) to implement the proposal within seven days.As Puneiites were facing 2 to 3 hours load shedding everyday, CII came up with the proposal that captive capacity of industrial units around Pune be used to ensure a round-the-clock power supply for the city. Taking a cue from the CII proposal, MSEDCL prepared a detailed report and submitted it to MERC for approval.According to MSEDCL estimates, considering a shortage of 100 Mega Watt (Mw) per hour and running captive power plants (CPPs) for 10 hours a day, and also considering 20% transmission & distribution loss as well as variable cost at peak hours at Rs. 3.65 per unit, the commision will have to pay around Rs 266 crore to CPPs to get additional power. Hence, MSEDCL will be required to collect an additional 84 paisa per unit from consumers. However, after taking into consideration suggestions and objections of various citizens groups and others and studying the economic rationale of the entire scheme, the commission found that it can allow MSEDCL to collect only 42 pasia from consumers as RC, excluding domestic consumers.The commission
