No hike in Reliance Infrastructure power tariff

The Maharashtra Electricity Regulatory Authority (MERC) has stayed a tariff hike by Reliance Infrastructure till further orders. The regulatory authority also asked the company to maintain the tariff existing and charged before the hike for consumer categories.

The Maharashtra Electricity Regulatory Authority (MERC) has stayed a tariff hike by Reliance Infrastructure till further orders. The regulatory authority also asked the company to maintain the tariff existing and charged before the hike for consumer categories.

This simply would mean that residential consumers would be billed according to rates existing last year i.e. the tariff as per the June 2008 order.

Reliance had asked for an overall hike in tariff up to five per cent, while the hike in the residential categories was close to 30 per cent. Besides, the order also said that the commission would also undertake a detailed investigation on metering, power purchase expenses and transactions undertaken by RInfra-D, as well as capital expenditure schemes.

The hike had attracted the ire of consumers and also the opposition parties in the state. Political parties like the Shiv Sena and BJP jumped into the fray and indulged in violent protests against the tariff hike and the state government.

The tariff rates, which is applicable to residential consumers as per the June 2008 order, is as following:u00a0

Low Tension Categories 101-300 units: - Rs 4.02 per unit 301-500 units: - Rs 7.02 per unit Above 500 units (Balance Units): - Rs 8 per unit

Keeping in mind the forthcoming assembly elections and the public anger against the massive hike in tariff, the state government requested the MERC to look into the tariff hike and also take action if there has been an arbitrary and unjustifiable hike in tariff.

The state had wanted MERC to complete the probe and take a decision within 15 days from June 25. The MERC is a quasi-judicial authority with regulatory powers to approve or reject power tariff structures of all licensed energy distributors.

Reliance Infrastructure has distribution licence for suburban Mumbai and caters to around 26 lakh consumers. During the course of agitation, the Shiv Sena had appealed to consumers not to pay electricity bills to register their protest against the hike.