To make this happen, the government seeks to bring a new Act to replace the present Maharashtra Electricity Duty Act 1958, which lacks provision for those who are not state consumers.
All those industries and commercial establishments that have either switched from state power to the cheaper Open Access option or are planning to do so in future will have to reconsider their decision.
Reason: The Open Access power in Maharashtra would no longer be as cheap as it is now. The Devendra Fadnavis-led government has decided to impose a 9% duty on all those consumers who purchase power through Open Access or open market traders and captive generators.
To make this happen, the government seeks to bring a new Act to replace the present Maharashtra Electricity Duty Act 1958, which lacks provision for those who are not state consumers. "The proposed Maharashtra Electricity Duty Bill 2016 would be tabled in the legislature during the Monsoon session," said a highly placed official.
If passed, Open Access power for industries would cost around 60 paise more per unit, and for commercial consumers it would be over 75 paise more.
MahaVitaran charges industry consumers Rs8.23 a unit, compared to Rs6.8 in Karnataka, Rs6.3 in Gujarat, Rs6.9 in Madhya Pradesh, Rs5.75 in Chhattisgarh and Rs5.10 in Goa. The power purchased through open Access is cheaper by at least Rs1.50 a unit.
Owing to the cost factor, over 500 big industries, including the Railways, have ceased to be a consumer of MSEDCL power in the last couple of years. The state is losing Rs5,000 crore in revenue every year because of this exodus, claim power activists.
Some industries in the state's border area are now buying cheaper power from the adjoining states, such as Chhattisgarh, Andhra Pradesh, Karnataka, Gujarat and MP.
In 2010-11 the share of high-tension industrial consumption accounted for over 37% share of the state's total energy consumption. In 2014-15 this share went down to 28%.
The government says the move aims to update the state's rules considering the changed scenario. "Several new concepts have come now. Open trading of power has changed the dynamics. Besides, other states have already revised their Act several years ago, as per the Centre's directive issued in 2003. Maharashtra failed to do so and lost over Rs6,000 crore in 12 years," an official said.
He also justified the move citing Gujarat's 15% duty on open access power. "Besides, we are dependent on industrial and commercial consumers for the cross subsidy of other sectors," he said.
Of MahaVitaran's 2.5 crore consumers, nearly 3.5 lakh are from the industry. The revenue earned from them helps in cross-subsidies of Rs 10,000 crore annually for the lower rates charged for agriculture and power looms.
The move aims to stop the exodus and would also make open access power almost at par with state's power. This would help state to make its coffers richer by Rs464 crore annually.
Interestingly, the Maharashtra government seeks to woo foreign investors offering various sops. Piyush Goyal, union minister of state for power, has also asked states to lower the industrial tariff to make it more attractive for industries.
What is Open Access
Open Access allows big users of power — typically having a connected load of 1 megawatt and above — to buy cheaper power from an open market. The idea is to allow customers to choose among a large number of competitors, instead of being forced to buy from the (usually state-run) electric utility monopoly. The (national) Electricity Act of 2003 had enabled this, though states have resisted its enforcement.
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