MERC’s multi-year tariff order comes to distressed consumers’ rescue even as govt struggles to find solution to rising demand for waiver and discount
The government asked its state-run company to not disconnect the supply of the defaulters until it decides on relief in the on-going budget session.
Amidst the demand for reducing the electricity tariff in view of the pandemic-affected economy, consumers can pay 1 per cent to 2 per cent less, thanks to the multi-year tariff orders issued last year by the Maharashtra Electricity Regulatory Commission (MERC).
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The relief, albeit small, will come into effect from April 1 this year till March next, without the government’s intervention. There have been consumer grievances and political wars over the higher tariff and inflated bills issued during the lockdown and unlock periods.
The government is still mulling a way to provide consumer relief. Earlier, it had rolled back a declaration made by the energy minister after considering the huge cost that the cash-strapped treasury would have to bear in case the relief was approved.
Early this week, the government asked its state-run company to not disconnect the supply of the defaulters until it decides on relief in the on-going budget session. Following a strong protest by the opposition, Deputy chief minister Ajit Pawar announced the decision, but not without creating confusion over the applicability of his diktat to the private and municipal utilities operating in Mumbai.
A Mumbai-based private company told mid-day that it was bound by the regulators’ order and can act only if MERC tells it. As a procedure, the tariff is determined for five years, leaving scope for the companies to ask for reviewing it in view of increased/decreased procurement/generation cost. In multi-year orders, the tariff across consumer categories varies every year.
The company said the tariff reduction/discount was also possible when the government asks the regulator to issue directives with a commitment for compensating the companies for the loss of revenue or allows it to recover the losses in the future billing.
AAP steps in for Mumbaikars
The Aam Aadmi Party, which has given substantial relief to consumers in New Delhi, stepped in to demand relief in Maharashtra. It said on Thursday that it has written a letter to the chief minister, the energy minister and the distribution companies, demanding that unwarranted bills be withdrawn and payment waivers be provided again to those whose electricity lines have been disconnected in Mumbai. The pandemic and the lockdown have created severe hardships in the lives of all Mumbaikars, and people are faced with unprecedented economic difficulties.
“Despite this, the state government and power companies are apathetic towards common citizens, and seem to avoid all measures to provide them with relief in such difficult times. Electricity consumers were charged shocking bill amounts and their connections were disconnected in the event of non-payment. Ajit Pawar issued an order on Wednesday to not disable the connections for such cases. However, he remained silent on the central complaint relating to the amendment of these unwarranted bills,” said a statement from AAP.
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