Mahadiscom seeks nod for 95 paise a unit hike

Feels the heat of skyrocketing coal and crude oil prices.

The Maharashtra State Electricity Distribution Company (Mahadiscom) wishes to hike tariffs by 95 paise per unit.

The annual revenue return (ARR) statement filed by Mahadiscom before the Maharashtra Electricity Regulatory Commission (MERC), said the revenue-expenditure gap increased ten-fold in the last two years due to a substantial increase in fuel costs. Volume and cost of purchasing power from other producers too has increased sharply.

Mahadiscom's revenue gap for 2004-05 was Rs 457.40 crore, was likely to be Rs 2,598.60 crore in 2005-06 and is expected to double to Rs 5,608.10 crore in 2006-07.

The reason for the growing revenue"�expenditure gap was an increase in the cost of crude oil and coal "� which went up 16 per cent last year. As much as 80 per cent of the state's power comes from coal-based plants.

And to meet the supply-demand gap Mahadiscom buys power from other producers. It purchased 200 mw from the NTPC plant at a staggering Rs 7.26 per unit.

Besides this, Mahadiscom will buy power from Ratnagiri Gas & Power (RGPPL) from May. As RGPPL has not been able to source gas, it will have to run its plant on naptha, which is more expensive compared to gas, as a result RGPPL will produce power at a higher price, which will stretch Mahadiscom's revenues even further.

Though the ARR statement doesn't talk about an increase in rates, a tariff plan that Mahadiscom will submit to MERC shortly is likely to highlight the demand, said a Mahadiscom official.

"Our average purchase price has increased by around 65 paise per unit and then, Mahatransco has also asked for a hike of 21 paisa per unit in transmission charges. Considering these facts, we need to raise around 95 paisa per unit to match revenue with expenditure," he added.

However, it is up to MERC to decide on the extent of increase to be passed on to the customer by Mahadiscom. They may also decide the category of customers that may get affected by the hike, the official said.

Meanwhile MERC Secretary Malini Shankar said, "It will take around three months for us to finalise the ARR of the Mahadiscom."

As MERC needs to publish the ARR submitted by Mahadiscom, call for suggestions and hold public hearings in various parts of the states and then only, we will be in position to finalise the ARR for the Mahadiscom". By March 20 we hope to have a schedule ready for all these activities," she added.