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Maharashtra govt mulls over uniform power tariff

Amid criticism that the Maharashtra Electricity Regulatory Commission has been arbitrary and anti-consumer in deciding power tariffs, the government today said that it would amend the existing act to ensure that the state has a final say in decisions taken by the regulatory body.

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Amid criticism that the Maharashtra Electricity Regulatory Commission (MERC) has been arbitrary and anti-consumer in deciding power tariffs, the state government today said that it would amend the existing act to ensure that the state has a final say in decisions taken by the regulatory body.

Responding to complaints of some legislators that incumbent MERC chairman VP Raja was anti-consumer in approach and is protecting the vested interests of power utility companies, deputy chief minister Ajit Pawar, who also holds Power portfolio, admitted that officials who get such posts for a fixed tenure of five years often become "adamant" and work according to their own will.

Earlier, initiating a debate on disparity between the rates charged by Reliance Infra and Tata Power for supply of electricity to Mumbai through a calling attention notice, Shiv Sena legislator Subhash Desai asked the state government to have a uniform structure of power tariffs for the city.

He complained that Brihanmumbai Electric Supply and Transport (BEST), Tata Power, Reliance, MSEB--that supply electricity to Mumbai city and suburbs have different tariffs whereas in Delhi the power tariffs are uniform for all the consumers.

Desai demanded that Tata Power which produces electricity in Mumbai and sells it outside should be restrained from doing so.

Pawar informed the house that the international consultancy and audit firm PricewaterHouse Coopers (PWC) has submitted a report over a technical study it carried out on uniform power tariffs for Mumbai.

"The report has been submitted and details are awaited," the minister said and added that the state government will have to give cross subsidies since Tata Power' tariffs could go up and Reliance's rates can come down.

In the background of Reliance Infra having 27 lakh consumers; Tata Power 1.70 lakh and BEST which supplies power to the island city, 10 lakh, Pawar said efforts would be made to ensure that number of small  domestic consumers is risen.

He said that even the office of Reliance Infra is using electricity being supplied by Tata Power since their own tariffs are higher.

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