Power bills to reduce by 20% from Dec if MERC's March 28 order is implemented | Nagpur News - The Times of India

Nagpur: After the Bombay High Court quashed Maharashtra Electricity Regulatory Commission's (MERC) review order on the Multi-Year Tariff (MYT) and directed Maharashtra State Electricity Distribution Company Limited (MSEDCL) to implement its earlier order on March 28, consumers are awaiting the impact on their power bills.Power experts say all consumers, including domestic, commercial and industrial, are likely to pay on an average 15%-20% lower electricity bills, compared to existing tariffs, if the March 28 order is implemented from December. However, they clarified this will depend on the Supreme Court's decision if MERC or MSEDCL move the apex court. The high court has given four weeks to the regulatory commission and power discom to approach the apex court.Speaking to TOI, independent director of Maharashtra State Electricity Board (MSEB) holding company, Vishwas Pathak, said they are analysing the high court order and will later take a call. "We have two options. Either go to Supreme Court or approach MERC," said Pathak. However, sources said MSEDCL is unlikely to move Supreme Court in lieu of the upcoming local bodies elections, but MERC could.On March 28, MERC issued a Multi-Year Tariff (MYT) order drastically reducing power tariffs. The order was hailed by consumers, many organisations, and power experts as historic and consumer friendly. However, after MSEDCL's appeal, the MERC stayed its own order and on June 25 issued a revision order, which power experts claimed power tariffs were significantly hiked.In response to this order, multiple writ petitions were filed by energy companies, industry associations, and consumer groups, who argued that MERC's review order was issued without inviting comments or holding hearings with stakeholders, despite introducing major policy and tariff changes. Speaking to TOI, power expert and former Independent director of MSEB Holding Company, RB Goenka, who was also one of the petitioners through Vidarbha Industries Association (VIA), said unless Supreme Court grants a stay on Bombay HC's order and the March 28 order is implemented from December, on average, bills of all the consumers will dip by 15% to 20%."In its March 28 order, MERC reduced power tariffs by around 10% but later stayed its own decision. As a result, old rates continued. Then, in June, the commission issued a revised order, increasing tariffs by about 10%. So, if the March 28 order is implemented, consumers will effectively get a reduction of around 15% to 20% compared to ongoing rates," explained Goenka.Another power expert and MSEDCL contractor, Mahendra Jichkar, also said tariffs of consumers will be cut by around 20%, if the March 28 order is implemented. "MERC must take decisions that are beneficial to consumers rather than taking decisions arbitrarily without taking consumers into confidence," added Jichkar. Box:COMPARISON OF ELECTRICITY RATESDomestic Consumers (in Rs per unit)| Slab | April 2024 | March order | June Order ||------|------------|-------------|------------|| 0-100 units | 5.88 | 5.67 | 5.75 || 101-300 units | 11.46 | 10.88 | 12.57 || 301-500 units | 15.72 | 14.07 | 16.85 || Above 500 units | 17.81 | 15.57 | 19.15 |Note: These rates do not include other factors in the electricity bills, including fixed charges and others.