Maharashtra State Electricity Distribution Company Limited (MSEDCL) is all set to increase the rates so consumers are ready to face the burden of price hikes in tariffs.
The proposal for price hikes have been sent to the State Electricity Regulatory Commission and 5% hike in the price for household consumers have been proposed in the proposal. The hikes are aimed at reducing the MSEDCL’s revenue deficit of more than Rs 5,100 crore.
The consumer will have to face 40% per unit price hike if the usage is more than 100 units. Around 50 lakh homes will have to suffer the burden of price hikes.
According to the MSEDCL’s tariff proposal, the per unit charge for consumers using up to 100 units of power will be increased from Rs 2.86 to Rs 4 while for users using 101-300 units, it will be increased from Rs 4.86 to Rs 5.05 per unit and for users consuming 301-500 units, the unit charge will rise to Rs 7.05 from Rs 6.84 while for 500-1,000 unit-consuming users, it will jump to Rs 8.1 from Rs 7.9 per unit.
Users with more than 1,000 units are currently charged with Rs 8.16 per unit but after price hikes, the consumer will be charged Rs 8.35 per unit.
“After taking into account the proposed increase in fixed charges the effective tariff hike for consumers who use up to 100 units is 55 per cent.” said the president of the Maharashtra State Power Consumers’ Association, Pratap Hogade to DNA.
Even the centre has already warned the states that not to expect any help from the central government, the company have no option left other than to hike the rates of the tariff.
The reason behind price hikes is simple as most of State Electricity Board (SEB) are struggling with increasing costs and they are forced to hike the tariff rates or else they will have to suffer annual losses.