MERC warns MSEB against power purchases

The Maharashtra Electricity Regulatory Commission (MERC) thinks it would be better for the Maharashtra State Electricity Board (MSEB) to reduce its distribution losses instead of buying additional power or starting new power plants in the state.

"There is a strong possibility of power tariff going up further if the MSEB buys power to tide over the present energy crisis," said Pramod Deo, chairman, MERC said.

He added that the Maharashtra government was planning to buy 2,200 MW from Dabhol Power Corporation (DPC) and would have to incur Rs 300 crore additional expenditure for this.

Currently, the annual expenditure of MSEB is Rs 1,000 crore. Deo reasoned that MSEB would turn to MERC for tarriff revision after its costs shoot up by 30 per cent if it does not heed the regulator's advice.