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DNA SPECIAL: Maharashtra Govt to seek legal view on referring Adani Electricity tariff hike issue to regulator

Under Electricity Act, 2003, state cannot directly refer case regarding tariff

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Amidst the growing debate and unrest over inflated power tariff recovered by Adani Electricity in the Mumbai suburbs, the state government sought legal opinion on Monday on whether it can refer the representation made by city BJP unit in this regard to the Maharashtra Electricity Regulatory Commission (MERC). This is necessary as the government has no powers under the Electricity Act, 2003 to directly refer to MERC any representation or memorandum concerning the tariff. The government also cannot give direction to MERC under section 108 of the Act, involving the private distribution company.

The government's move comes following a plea by city BJP president, Ashish Shelar. Chief Minister Devendra Fadnavis has already, upon Shelar's appeal, asked state power minister, Chandrashekhar Bawankule to look into complaints of excessive billing by Adani Electricity. On Monday, Shelar approached Bawankule, state power secretary Arvind Singh, and MERC secretary Abhijit Deshpande.

He said, "Adani Electricity is charging power tariff not on an actual basis but on aggregate or average basis thereby adversely impacting the consumers' interests. The government has taken a serious note and Bawankule has assured that the government will refer the matter to SERC."

However, the government official said that it has no powers to directly refer tariff-related issues to MERC. "Therefore, the decision was taken to seek legal opinion and proceed on this matter," he noted. However, the officer informed that the consumer in his or her individual capacity can directly file a petition before MERC.

Central Electricity Regulatory Commission's (CERC) former chairman Pramod Deo said as far as the private distribution licensee is concerned, the state government has no role to play. "Hence the state government can approach appropriate legal forum for redressal of the consumer grievances," he opined.

On its part, the Mumbai Regional Congress Committee president Sanjay Nirupam on Monday demanded that the government give direction under section 108 of the Electricity Act, 2003 to MERC and Adani Electricity to revise the tariff to protect consumer interests. He appealed to the Chief Minister to institute an inquiry into the regulator's functioning. Adani Electricity has argued that the surge in electricity bill was due to increased consumption combined with tariff rates approved by the MERC.

RISING TEMPERATURE

Increase in electricity bill has seen active protests from politicians

  • The government’s move comes following a plea by Mumbai BJP president, Ashish Shelar 
     
  • Shelar approached Bawankule, state power secretary Arvind Singh, and MERC secretary Abhijit Deshpande 
     
  • However, a government official said that it has no powers to directly refer tariff-related issues to MERC 
     
  • City Congress president Sanjay Nirupam demanded that the state give direction under section 108 electricity act to MERC and Adani Electricity to revise the tariff in consumers interest
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