Effective power price hike at 43%, says PwC

The effective price hike for the Maharashtra State Electricity Distribution Company Limited (MSEDCL) is around 43 per cent, according to Price WaterhouseCoopers (PWC), appointed by the Maharashtra Electricity Regulatory Commission (MERC). The power utility had demanded 28.8 per cent hike.

The report was submitted to the power regulator on Friday by PWC. The MSEDCL in its annual revenue requirement (ARR) had noted that with the current tariff it will earn around Rs 18,942 crore and will incur losses of around Rs 1,401 crore in the financial year.

The losses in current financial year will take the cumulated losses of the power utility to around Rs 5,462 crore. However, if it is granted a hike of 28.8 per cent then it will help MSEDCL wipe out its all cumulated losses.

But PWC, appointed by MERC to analyses the ARR of the MSEDCL, has stated that MSEDCL by taking advantage of small loophole in the MERC's earlier order has increased its fuel surcharge from 49 to 96 paisa. Considering the hike in fuel surcharge then actual tariff hike works out to be around 43 per cent.

The MSEDCL is expected to face lot of public anger and scrutiny during the public hearing from consumer orgnisations.

As it is consumers are already facing power cuts from 3 hours to 12 hours. The power regulator is going to hold public hearings before finalising the ARR for the power utility.