A respite from high electricity bills due to a pleasant winter proved to be short-lived for Adani consumers. The power regulator Maharashtra Electricity Regulatory Commission (MERC) has allowed Adani Electricity Mumbai Limited ( AEML) to recover Rs 20.35 crore of regulatory asset charge from its 25 lakh consumers in the city. The MERC attributes this to an error in calculating and fixing this charge earlier. The regulatory asset charge (RAC) is the cost of laying power network and other related works. 

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According to a rough arithmetic this will mean that the average Adani consumers would need to pay an additional Rs 80. 

“If we do rough calculation it would mean that on an average a consumer of AEML will have to pay an additional Rs 80 in his electricity bills. According to sources, AEML had asked for Rs 491.78 crore to be recovered for 2018-19 under the head regulatory asset charge (RAC). The RAC in simple words is nothing but cost of laying network and other related works.

However during calculations done in mid-term review the amount Rs 471.43 crore was wrongly taken. 

“We are already burdened by the sudden surge in electricity bills. Although this amount seems less but hopefully it should not burden people more,” said V Reddy, a resident of Andheri. 

Now, the MERC has asked AEML to take this additional Rs 20.35 crore as under recovered amount while billing the consumers in the coming months. 

People from suburbs had been crying hoarse over drastic increase in electricity bills in the past couple of months after revised tariffs came up from September 1. 

This will only add to their cup of woes. There were severe protests from political parties and other organisations. 

In order to explain their position better, AEML has stated reasons for the increase and how MERC had approved the hike when Reliance Infrastructure was still distributing electricity to the consumers.

MISCALCULATION

  • Upon verification of the impugned MTR Order, the Commission observed that there is a calculation error while calculating carrying cost on the Regulatory Asset recovery in FY 2018-19  
  • The carrying cost has been understated by Rs 20.35 crore in FY 2018-19.  
  • Hence, same is allowed to the tune of Rs 491.78 crore in this review