Western India: Maharashtra Govt. Temporarily Suspends Fixed Electricity Charges for Industries

Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is a public sector undertaking controlled by the government of Maharashtra was admitted by the Maharashtra Electricity Regulatory Commission (MERC or commission), determined the ARR and Tariff of MSEDCL for 4th Control Period from FY20-21 to FY24-25 through its order of 30 Mar'20. The revised tariffs will be effective from 1 Apr'20.

-- To mitigate to some extent Corona Pandemic, the Commission deems it fit to put a moratorium on payment of fixed charges of the electricity bill by consumers under industrial and commercial category for next three billing cycles beginning from the lockdown of 25 Mar'20.

-- In addition to this steep tariff reduction has also introduced on Bulk Supply Discount at rate of 2% to 1% on energy charge including FAC (HT-Industrial consumers with consumption in excess of 1 lakh units per month)

-- To further encourage industrial consumption from MSEDCL, a concept of incremental consumption rebate of Rs 0.75/kVAh has also been introduced and additionally, incentives have been retained/increased so as to give relief of overall reduction in tariff of the consumers.

-- New initiatives through system of Power Factor (PF) incentives/penalties to kVAh billing where mechanism to incentivize or penalize consumers according to their PF along with introduced kVAh tariffs in a phased manner where it's approved for all HT categories.

Further, its being learned from market participants in Maharashtra (West region), that few subsidies are yet to clear on power usage as current Average Billing Rate (ABR) Inc. FAC is at Rs. 9.40/kWh for MSEDCL consumers and for FY20-21 revised would at Rs. 8.50/Unit as per attached link.

https://www.steelmint.com/fileForMail/1585593961_31_Mar_Press_Note-MSEDCL_English.pdf