The Maharashtra Electricity Regulatory Commission (MERC) has approved a 16.48 per cent average increase in power tariff by state power utility Maharashtra State Electricity Distribution Co Ltd (MSECDL).
The revised tariff, which has retrospective effect from 1 August, has come as a rude shock to its over 20 million consumers.
"The commission has approved an overall increase in average tariff of 16.48 per cent against 17.68 per cent sought by MSEDCL," MERC said in its order today.
"The increase in tariff is primarily on account of rise in power purchase expenses, which have gone up primarily due to rise in fuel prices," MERC said.
MSEDCL had filed a petition before the regulator seeking approval for average revenue requirement (ARR) for FY13 of Rs50,750 crore. MERC, however, has approved ARR of Rs48,926 crore.
Under the revised tariff order, fixed charge for below poverty line consumers has been raised from Rs3 per month to Rs10 while the energy has been reduced from 0.89 paise to 0.76 paise per unit.