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Please raise objection with MERC

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  • karmayog
    Subject: Please raise objection if you feel right with MERC Main Point: The Chairman, Maharashtra Electricity Regulatory Board, World Trade Center, Center
    Message 1 of 1 , Mar 29, 2013
       

       Subject:Please raise objection if you feel right with MERC
       Main Point:The Chairman, Maharashtra Electricity Regulatory Board, World Trade Center, Center No.1,13th Floor,Cuffe Parade, Colaba, Mumbai-400 005. Telephone No. : 091-22-2216 3964/65/69 , Fax : 091-22-2216 3976 Email : mercindia@...
       Category of Topic:Consumer Rights
       Message:High Wheeling Charges (Charges paid to the owner of the Network for its use)Changeover consumers are those consumers who have shifted electricity supply from Rinfra to Tata Power Company Ltd. but uses distribution network of R-Infra. These consumers pay the cost for the usage of Rinfra's wires to R-infra and this cost is called wheeling charges. Wheeling charges consists of Regulated Profit (Return on Equity), O&M expenditure, Depreciation, Interest etc.and any expenditure of Capital nature like Transformers, Cables, Meters etc, will increase Wheeling charges. Issues to be raised As per Rinfra it has its distribution network in entire Mumbai. In this scenario why do they propose such recurring high capital expenditure for wires, and that too around Rs 400 Crs every year? This will only increase wheeling charges which changeover consumers will have to bear, which in turn will increase the billed amount. It is pertinent to note that the energy charges are low of Tata Power Company Ltd right from the beginning, but these extra charges supposed to be paid to RInfra is what will hit these changeover consumers at large and would result in increase of bill amount in totality. Also, as Rinfra's sales on their wires, from FY12 to FY16 are decreasing such high capital expenditure cannot be justified. Cross Subsidy SurchargeAll Commercial, Industrial and Residential consumers above 300 units are liable to pay CSS and they are as high as depicted below.a) As per the National Tariff Policy, the CSS has to be reduced progressively as given below The cross-subsidy surcharge should be brought down progressively and, as far as possible, at a linear rate to a maximum of 20% of its opening level by the year 2010-11.In the last two years R Infra's Power Purchase cost has been coming down.Issues to be raised· Cross Subsidy Surcharges [CSS] proposed for financial year 2014 to 2016 by Rinfra is very high. · If the purchase cost of Rinfra has reduced then the Cross Subsidy Surcharges [CSS] should also reduce. Here the intention seems to be that of levying heavy CSS charges and continue to earn from the change over consumers, which seems ethically wrong. · If the CSS has to be reduced over the years why is R Infra asking for more & more?What is Regulatory Asset?MERC [Maharashtra Electricity Regulatory Commission] determines tariff based on certain assumption of cost to be incurred to carry on the distribution business. However, it may so happen that for various reasons outside the control of the distribution Licensee, he may not be in a position to recover its actual cost based on the tariff approved by MERC. This difference between the approved cost and revenue recovered for a particular year leads to creation of under-recovery, which is termed as regulatory assets. R-infra has proposed a recovery of a separate Regulatory Asset Charge for recovery of this Regulatory Assets from changeover as well as direct consumer. Issues to be raised · Regulatory asset is always part of the tariff but R-infra has presented it separately and tried to show as if the tariff is less. · If a consumer has shifted from R infra to Tata Power why should he pay for previous regulatory assets after he has made a choice to changeover? · R Infra has proposed to recover a cumulative revenue gap as high as Rs. 3674 Crs. over a period of 6 years. Is this high amount of recovery fair to be levied for such a long duration?
       Additional Information 1:We need to object Rinfra Multi Year Tariff as it is unjustifyable
       Additional Information 2:Explaination of the entire issue and Why we need to raise objections
       Name:Mohammed Afzal
       Location:Yari Road, Andheri [w], Mumbai
       Email 1:mohdafzal1963@...
       Information about yourself:Consumer /Human Right / RTI Activist
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