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PMC wants power rates cut; ball in MERC court

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NitinPatil

Posted: Jan 08, 2008 at 0000 hrs IST

Pune, January 7 Weighed down by the "hefty electricity charges" of the Maharashtra State Electricity Distribution Company Limited (MSEDCL), the water supply department of Pune Municipal Corporation had filed a plea with Maharashtra Electricity Regulatory Commission (MERC) eight months back seeking reduction in the tariff charges on the grounds that water was the "basic necessity" of citizens. The hearing on this issue will be held in Mumbai on Tuesday.

The MSEDCL billing, which includes reliability charges and additional supply charges (ASC) run into crores, which the PMC wants to do away with. The PMC water supply department had approached the MERC in April 2007, seeking exemption from the additional charges. However, MERC had argued that it was difficult to decide in favour of one municipal corporation as the decision will then become applicable to other civic bodies as well. After the PMC request was rejected by the MERC, the State Water Supply and Sanitation (WSS) Department had approached the MERC in November, supporting the cause of PMC.

In the petition, the WSS department said: “Energy consumption on WSS is only to the extent of 3-4 per cent of total energy consumption in the State and, therefore, review of the energy tariff for WSS may be favourably considered.” The department said ASC charges not be applied to water supply schemes and that the tariff charges be brought down as drinking water is a basic need. The petition appeals to MERC to scale down the tariff rates to the level of the tariff rates existed in 2003.

An official from the Parvati water works said, “Ever since the captive power project was initiated in Pune, the MSEDCL started levying 42 paise per unit as reliability charge. This put a burden of Rs 38 lakh a month on PMC water supply department. From October 2006, the power utility started charging ASC as well. Initially, the rate was Rs 5.15 per unit, which was later increased to Rs 5.36 a unit. This again put an extra burden of Rs 1.70 crore a month. Until June 2006, the total annual bill amount used to be approximately Rs 36 crore, which has gone up by Rs 25 crore. And we want to get rid of these charges.”

He added: “All we want is exemption from the ASC and RLC, since we are not supplying water for making any profits. In fact, 43 per cent of the water is being provided to slum areas."

Vivek Velankar, president of Sajag Nagrik Manch Vivek Velankar however said, “The chances of proposal of exemption getting accepted by MERC is bleak as the decision was okayed by then commissioner Nitin Kareer. Now if the exemption move is decided, the charge of 42 paisa needs to be recalculated as it will affect all other consumers.”

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