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MERC to hear MSEDCL plea in Mumbai today

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Express news service

Posted: Feb 25, 2008 at 2345 hrs IST

Pune, February 24 In an effort to continue the uninterrupted power supply for the city, the Maharashtra Electricity Regulatory Commission (MERC) on Monday will hear the petition of Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to recover expenditure on account of costly power procurement for mitigating load shedding in the city. This is being done through levy of reliability charges on consumers, excluding domestic ones, consuming less than 300 units along with another option of possibility of restoring load shedding in the city for covering the increasing power deficit. The hearing will be held in Mumbai.

MSEDCL has submitted that the scheme will be implemented for a period of one year. In the original CII-Pune model being executed from June 2006, it was envisaged that the entire requirement of power to mitigate load shedding in Pune would be procured from surplus power available with Captive Power Plants (CPPs) in Pune.

In the first option under the revised proposal under consideration, MSEDCL has submitted that as the surplus power from CPPs is insufficient to mitigate the demand-supply gap in Pune city, MSEDCL would procure additional power through separate PPAs exclusively for Pune Urban Circles, in addition to procurement from CPPs in Pune. In the second Option, MSEDCL has proposed to procure available surplus power from CPPs and to restore the load shedding for the remaining power deficit in Pune Urban Circles.

Meanwhile, the CII has proposed a new model to tackle the bridge the power gap of demand and supply and continue with the uninterrupted power supply by procuring additional power by few private companies directly through a power trading company.

The CII initiated model was being executed with the involvement of 30 industries generating power for their own consumption while diverting the MSEDCL supply to the domestic consumers to overcome the demand-supply gap. The power shortage was 90 MW when the model was started while it has reached 150 MW now making it difficult to its implementation.

As per the model, the consumers with more than 300 units per month were paying reliability charge of 42 paise per unit to incur the additional cost of the 30 industries using captive power generation for their operations.

However, there has been opposition from consumers from other cities for the “favour” being shown to Pune through uninterrupted power supply.

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