MERC in its order with a far-reaching impact has slashed the MSEB's tariff hike proposal from 18.9 per cent to a moderate 6.5 per cent. MSEB which is severely disappointed by the tariff order is of the view that it would not help revive the board financially within a short span of one year.

MSEB is also dissatisfied over the MERC's directive disallowing its expenses of Rs 309 crore towards generation and power purchase. This will have a direct impact on MSEB's power purchase plans from the state-run National Thermal Power Corporation and the Dabhol Power Company.