SC continues stay on refund of power charges

The Supreme Court has continued the interim stay against the order issued by the state power regulator with regard to the refund of certain charges levied by Maharashtra State Electricity Distribution Company Ltd, officials said today.

The refund pertains to service line charges (SLC) and out-right contribution (ORC) estimated to be about Rs 250 crore which were recovered by MSEDCL from consumers over a period of time.

"The matter came up for admission before the Supreme Court on Friday. The court while admitting the appeal directed the continuation of interim stay on refund," MSEDCL official said.

Maharashtra Electricity Regulatory Commission had asked MSEDCL to refund the charges in response to a petition made by certain consumer organisations.

The MSEDCL official said the distribution company's stand is that funds are required for basic infrastructure when a power connection is given and part of it is funded through SLC and ORC.

This is as per the provisions of the Electricity Act 2000 which allow recovery of the amount from the consumers who are availing power supply, he added.

"The reason the MSEDCL appealed to the Supreme Court was that this will necessitate refund of huge amounts possibly to some non-eligible consumers and the burden of this refund will have to be ultimately borne by common consumers when power tariff comes up for revision," an official said.