MSEDCL rejects MERC order

Mumbai: The Maharashtra State Electricity Distribution (MSEDCL) has told the state power regulator that it cannot comply with the order given by the latter last month to purchase costly power.

In a letter sent to the commission MSEDCL said that the additional charge allowed to be recovered from consumers for costly power was unrealistic at Rs5.36 a unit as the prevailing rate in the market is Rs7-8 a unit and even the Central Electricity Regulatory Commission had increased the ceiling rate to Rs7.45 per unit. It said that the recovery for purchase of costly power is limited to 400 million units a month as per a MERC order.

MSEDCL said that for this limited quantity, there would be a gap of Rs 125 crore a month and if an additional 330 million units are procured, the gap will increase to Rs379 crore a month, which is financially un-sustainable for the organization.

MSEDCL suggested the commission should fix the additional charges for costly power realistically and revise the quantum of costly power that can be purchased. It said the tariff order for last year had addressed this issue properly. However, the new tariff order changed the mechanism to collect charges for high cost power, the letter said.