The Maharashtra government has criticised the state power regulator for allegedly protecting the interests of independent power producers at the cost of small consumers.
Energy minister Ajit Pawar said the government would take the department of law and judiciary’s opinion on initiating legal action against the Maharashtra Electricity Regulatory Commission (MERC). If the matter concerned the central government, the state would seek the power ministry’s view.
Pawar’s statement came in response to strong criticism in the legislative assembly by members of both the ruling and opposition parties of MERC and its recent judgements. The MLAs claimed MERC was siding with a few private companies, neglecting the interests of small consumers. They sought government intervention. Members were particularly critical about MERC’s recent orders on open access and increase in wheeling charges to a wind-power generator.
Pawar said there was substantial change in the behaviour of MERC members before and after their appointments. He assured the assembly that the government would take all possible steps to protect the interests of small consumers and farmers. MERC chairman V P Raja told Business Standard: “I fully respect the state assembly. At MERC, we have been making sincere efforts for implementation of the Electricity Act, 2003. There is a communication gap which needs to be bridged.”
The Maharashtra State Electricity Distribution Company (MahaVitaran) was among those which had rapped the MERC’s recent decisions, such as for providing open access without any surcharge. It wanted to levy a surcharge in doing so. MahaVitaran also took serious objection to MERC’s multi-year rate regulations, wherein the power distribution company would have to give the daily requirement up to 2016. MahaVitaran has already conveyed its inability to do so. It has also criticised MERC’s order on the purchase of renewable energy certificates.
