You may have to pay more for uninterrupted power supply
Mumbai: Despite the growing power shortage, which is almost 700 MW now, Mumbai has managed to get uninterrupted electricity supply through purchases from sources outside the state. However, costly power from outside has forced Mumbai’s utilities to seek a revision in tariff by way of higher fuel adjustment charges (FAC).
As a result, the overall power tariff can go up by 20% in case the Maharashtra Electricity Regulatory Commission (MERC) allows revision in the FAC. Given that no power company would absorb the higher fuel prices on its own, a revision in FAC seems imminent.
Sources said all the three utilities in Mumbai—Tata Power, Reliance Energy Ltd (REL) and BEST—have sought revision in the FAC, which reflects the volatility in the fuel prices.
As of now, MERC allows an FAC limited to 10% of the average tariff. For instance, if REL’s average tariff across categories is Rs 5.50 per unit, it would be allowed to recover an FAC of 55 paise per unit.
All the power companies have told the MERC that the present FAC limit does not allow them to recover the price of expensive power from outside. The firms have also pointed out that their own electricity generation has also become costlier than envisaged because of the rise in coal, gas and oil prices.
Lalit Jalan, director of REL, said power utilities are facing a big cash crunch because of the cap on FAC. “The present level of FAC is good enough only to tackle the rising fuel bill of our existing power generation plants. It does not cover the high price being paid to buy power from outside,’’ he said. Sources in other utilities corroborated this view.
MERC officials have finished listening to various parties on the FAC issue. MERC sources said a more realistic FAC would have to be allowed given that it is straining the finances of power companies. “Whether you allow it now by revising the FAC or add everything to next year’s tariff, the consumer has to bear the burden in order to enjoy uninterrupted power supply,’’ he said.
Minister, cos hold talks for extra power
Minister, cos hold talks for extra power
State energy minister Dilip Walse-Patil on Wednesday held talks with private power companies for buying additional electricity for Maharashtra. A clutch of companies, including Adani, Reliance Power, Tata Power and Lanco Power have promised 1,230 MW to the MSEB from next month. TNN