Mixed bag for power consumers in Pune

Though citizens enjoyed zero load-shedding due to the revised Pune Model in 2010, they were burdened with repeated power tariff hikes.

Frequent power cuts on Thursdays in some parts of the city for maintenance work undertaken by Maharashtra State Electricity Distribution Company Limited (MSEDCL) also added to their woes.

Before the year began, the Maharashtra Electricity Regulatory Commission (Merc) had approved the Pune Model, an arrangement to avoid load-shedding by providing additional power procured at high cost.

The model worked well during 2010 and citizens did not face load-shedding in spite of highest-ever demand for power in May. The demand reached its peak on May 18, when the state needed 16,615 MW.

However, the relief from load-shedding came at a cost. Merc, in its order in November 2009, had levied reliability charges of 21 paise per unit for power consumers in Pune. In April, the MSEDCL proposed to increase the average power tariff hike for domestic consumers by 14% for financial year 2010-11.

Sajag Nagrik Manch president, Vivek Velankar, and energy expert of NGO Prayas, Shantanu Dixit, said the power utility had proposed 14% hike in power tariff to mop up Rs4,100 crore. The citizens faced power tariff hike six times in the past year.

The proposed 14% hike is the last straw that threatened to break the consumer’s back. Merc organised a public hearing in May on the proposed hike, which the power consumers opposed tooth and nail. The regulatory body, in its order in September, avoided the tariff shock and allowed 3% hike in various categories.

Meanwhile, power consumers in Pune and rest of Maharashtra had to pay 37 paise per unit more for August as the MSEDCL decided to levy fuel cost adjustment to recover extra money paid to procure costly power in May due to high demand.

Power consumers were subjected to one more tariff hike in December. On September 12, Merc agreed to MSEDCL’s power tariff order allowing it to generate additional revenue of Rs909 crore for the current financial year.

Acting on the power utility’s review petition, Merc allowed it to augment its income by Rs1,136 crore.

President of Maharashtra Veej Grahak Sanghatana, Pratap Hogade, said Merc allowed additional revenue of Rs2,045 crore to be recovered from consumers by way of tariff hike in its two successive orders.

The power consumers in the state had to pay 8.5% additional tariff.

MSEDCL also launched several drives to recover power dues during the year. Employees of the power utility went to the extent of snapping power supply to many government offices for non-payment of bills.

Power supply to Samarth police station was also disconnected. Dixit told DNA that the quality of service remained an important issue during 2010. “Citizens got relief from power cuts as the revised zero load-shedding model worked well. However, they faced power cuts on Thursdays and repeated power tariff hikes during the year,” he said.