MERC hears petition seeking extension of zero loadshedding model

The Maharashtra Electricity Regulatory Commission (MERC) on Thursday heard a petition submitted by consumer organisations,that had appealed for an extension of its order dated June 20,2008,where the Tata Power company was appointed as an interim franchisee to procure power for Pune,Thane and Navi Mumbai. The MERC acknowledged the contention made in the petition but raised concerns that the Maharashtra State Electricity Distribution Company Limited (MSEDCL) should have a permanent solution to the issue.

The zero loadshedding model will expire on May 31. Hence,organisations like Prayas Energy Group from Pune and others from Mumbai had filed a petition seeking the continuance of the model. The MSEDCL had on May 14 sought continuance of the model,and also approval for recovery of reliability charges. While the MSEDCL is in the process of filing an independent petition before the MERC for approval of reliability charges from Pune consumers,activists had urged MERC to extend the applicability of its order.

The MERC had,in its order,approved the appointment of an interim franchisee and approval of reliability charge to be recovered from Pune consumers. The order was operational till May 31. MSEDCL had entered into a tripartite agreement with the Tata Power Trading Company for the Pune region. At the hearing,the commission strongly recommended for a permanent solution. The Commission advised that there was a need to increase the generation of electricity by bringing in smaller generating sets spread across Maharashtra so that the shortfall of loadshedding is reduced. Also,the MSEDCL should ensure that a permanent franchisee is appointed. The MERC also noted that the MSEDCL was aware that the deadline was May 31 and stated that planning should have been done earlier rather than at the last minute. The MERC will take a decision on the extension of the model before May 31.