Maharashtra uses section 108 to stay MERC order for reduction of cross subsidy
Tuesday, 01 September 2009

MERC should declare a policy on cross-subsidy in various categories of power consumers. - minister said.
Maharashtra government stayed the MERC order lowering tariff for commercial users like malls and theatres and increasing tariff for other smaller users. Maharashtra Electricity Regulatory Commission has done this in accordance with Electricity Act 2003 and Tariff policy which advocates reduction of cross subsidy.

" The State Government has decided to stay MERC's order dated August 17, using powers under section 108 of Indian Electricity Act-2003, which gives power to state Government to give policy directions to SERC." Energy Minister Sunil Tatkare told reporters. "There is no point in lowering tariff for those who use maximum power for commercial use and increasing tariff for small users," Tatkare said. The decision to stay the MERC order is being taken 'keeping in view public interest at large,' he said.

"The per unit charge for large commercial consumers, which was Rs 8 earlier, has been reduced by three per cent to Rs 7.76, while the tariff for categories like public water supply schemes has been increased by 4 per cent, from Rs 2.19 earlier to Rs 2.27," the minister said.

There is a mismatch in power demand and supply situation in the state but it was expected to be normalised by December 2012, he said.