MERC allows RInfra to recover Rs2,316 crore in tariff dues in Mumbai
03 Aug 2011
The Maharashtra Electricity Regulatory Commission (MERC) has allowed Reliance Infrastructure Ltd, which is the sole supplier of electricity to Mumbai, to collect accumulated dues of Rs2316 crore.
The MERC order approves the recovery of `Regulatory Assets of Rs2,316 crore' due to Reliance Infrastructure Ltd, resulting from a stay on tariff order and adjustment of various costs in the process of review by MERC for the period of 2007 to 2011, the company said in a release.
The dues will be recovered from all the consumers who are connected to RInfra's network, including those supplied by Tata Power, the release said.
The recovery of dues will also attract a carrying cost at the rate of SBI's prime lending rate (PLR) till these amounts are recovered, it said.
In Mumbai, commercial and industrial consumers subsidise residential consumers. The migration of predominantly high-end consumers to Tata Power results into potential tariff shock to residential consumers. In view of this, MERC has allowed a levy of cross subsidy surcharge on all Tata Power consumers using RInfra network. This surcharge will be applicable from the date the consumer has shifted to Tata Power, the release said.
"We sincerely remain thankful to the commission for protecting the interest of our 22 lakh residential consumers. We remain committed to offer our best services to Mumbai consumers," Lalit Jalan, CEO and director, Reliance Infrastructure Limited, said.
