Activists have criticised the proposed hike of six to eight per cent in power tariff by the state government saying it would put more load on the consumers.
Activists have criticised the proposed hike of six to eight per cent in power tariff by the state government saying it would put more load on the consumers. With the proposed power hike, the electricity tariff will increase to Rs 7.15 to Rs 7.25 from the current Rs 6.03. The activists have claimed that the move will push up the industrial power tariff also hampering the prospects of the state in inviting businesses to Maharashtra. However, officials from the distribution company hope that the state might give subsidy to avoid load on consumers.
The proposal about the power hike has been sent to the Maharashtra Electricity Regulatory Commission (MERC) suggesting a hike of six to seven per cent. Also, there is an additional 12 to 13 per cent of fuel charges making the total hike 20 per cent. “We are demanding that the tariff hike should be withdrawn completely and the state should keep competitive tariff. All the organisations related to power are going to protest on the issue and a state-level meeting has been convened in Mumbai. The
BJP-led government had promised to reduce tariff within six months of assuming the office. However, in June 2015, there was hike of 8.5 per cent and now this 20 per cent proposal,” Pratap Hogade, secretary of Maharashtra Veej Grahak Sanghatana, said.
However, an official from Maharashtra State Electricity Distribution Company (Mahadiscom) said the hike was inevitable but will not burden the consumers. “The tariff hike in necessary considering the generation cost. But it will not burden consumers if the state government subsidises us. The state will have to pay a certain amount to the Mahadiscom as a subsidy to avoid putting load on the consumers. The erstwhile government had also done it in past. But the question is if the government is willing to give subsidies ” the official said on condition of anonymity.
“The government should understand that the industrial tariff should be competitive with other states else businesses would go away. A similar situation had occurred in 2013. But bowing to the pressure from the industries, the Narayan Rane Committee gave Rs 700-crore subsidy to keep the tariff under control,” Mr Hogade said.
Mr Hogade said the state has no control over the situation. “The private power generators are selling power at Rs 3.50 per unit. But some are forced to buy expensive power from Mahadiscom, the state owned company at Rs 4.50 to Rs 6 per unit. Corruption, inefficiency of government companies and low generation is forcing to keep the tariff high in the state,” Mr Hogade said.
