Cong MPs raise heat for cut in power tariff

Nirupam, Dutt lead protests outside Reliance Energy’s office, Chief Minister promises to take up the matter in Cabinet

Priya Dutt and Sanjay Nirupam during the protests
on Monday. Dilip Kagda

Following protests led by Congress MPs Sanjay Nirupam and Priya Dutt outside the office of Reliance Energy office at Kandivali on Monday, Chief Minister Prithviraj Chavan promised to discuss the issue of higher power tariff in the suburbs in the Cabinet even as the discom issued a press note saying the issue would be referred to the MERC, the electricity regulatory authority in the state.

The state government also urged the Congress members to give the Reliance Energy some time to look into the issues and stop their agitation. “We will not rest till the company takes measures to lower the tariff,” Nirupam said addressing the protesters who raised slogans against Reliance Energy chairman Anil Ambani.

“Reliance Energy has issued a statement promising to send our demands related to the additional surcharge to the regulatory authority for a final decision. We hope they will act,” Nirupam told The Indian Express. At a meeting with Chavan, Congress members said they expected the power company to act by January 18, failing which they would resort to agitation from January 18. Several Congress MLAs and corporators representing western suburbs have extended their support to Nirupam and Dutt. “We want the government to intervene and ensure uniform power tariff. Why should people in suburbs be made to pay more?” Dutt said.

Earlier, a group of ministers headed by Industries Minister Narayan Rane had recommended 10 to 20 per cent cut in power tariffs.

Nirupam too had written to Chavan demanding a reduction in power tariff, asking if the AAP government in Delhi could do so, why the same could not be done in Mumbai and Maharashtra.
Nirupam had also written to Anil Ambani asking him to be present during the agitation to address the public and explain his company’s position. Among the demands are for certain charges like the fixed charge and regulatory asset charge to be withdrawn by the company.

Earlier, Deputy Chief Minister Ajit Pawar, who holds the power portfolio, had promised to bring a law to ensure uniform power tariff in Mumbai and its suburbs. However, the government has failed to take a formal decision.

The government is also faced with rising unrest within the industry against higher power tariff.

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Meanwhile, RInfra issued a statement giving a detailed response as follows:

In Maharashtra, tariffs for all distribution licensees are determined by Maharashtra Electricity Regulatory Commission (MERC) as per Electricity Act 2003. Supreme Court has also ruled that determination of tariff should be left to MERC and ordinarily High Court and even Supreme Court should not interfere with the determination of tariff.
The current tariff was determined by MERC through its order dated August 22 last year. This revision had been made after a period of more than four years.
Fixed charges are part of tariff determined by MERC. To supply 24×7 power to our consumers, we have to permanently maintain the required infrastructure and service financial obligations all of which comprise fixed cost.
The company procures power from Dahanu thermal power station and tariff of which is determined by MERC. In addition, RInfra purchases power from other sources which are finalised through competitive process and approved by MERC.

mumbai.newsline@expressindia.com

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