VIA welcomes PF scheme but seeks further clarification

Source: The Hitavada      Date: 08 Jan 2019 09:14:40



Business Bureau,

The Vidarbha Industris Association (VIA) on Monday welcomed the recent decision of the State power regualtor on the issue of power factor incentive scheme with open arms. The leading body of the region’s industrialists said that decision would give much needed respite to more than 80 per cent of the high tention (HT) category consumers who were bearing the brunt of the revised power factor incentive scheme that was brough into effect from Sepetmeber 1, 2018.

However, speaking to the media persons here, Vice President of VIA and Director of MSEB Holding Co. Ltd - R B Goenka also said that power distribution company should come out with detailed clarrification on the new scheme of refund and remove doubts it had developed among the consumers.

“At the outset, we all are happy to see that the regulator has realised the hardship being faced by the consumers. In its January 2 order, the commission has directed the power distribution company to continue the power factor incentive scheme and refund the additional charges collected from the consumers from September 2018. The revised scheme of penalising PF had been stupendiously inflating the electricity charges of the consumers,” he said.

But Goenka said that new methodology declared by the company to decide eligibity of the consumers for the refund needs to be simplified. “Moreover it, seems that the power distribution company would continue to impose power factor penulty till March 2019 which is not in the favour of the consumers,” he said. After the Maharashtra State Electricity Distribution Company Limited (MSEDCL) brought into effect the new tariff from September 2018, the effctive hike in the charges (including PF penulty) was in the range of the 25 to 30 per cent. It gave sleepless nights to most of the industrial category consumers.

And thus VIA had filed review petition in Maharashtra Electricity Regulatory Commission (MERC) seeking continuance of the power factor incentives.

Since the new power tariff was implemented, the consumers have been not getting the incentives. Besides, they were also paying additional charges in the form of penalty for not maintaining PF. However, on Wednesday, the MERC modified its previous order and gave relief to the consumers. The regulator also directed the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to fund the increased amount to the consumers in three installments. But, there is condition for the refund. It will be based on consumer’s power ultilisation and scale of power factor (PF).

The refund would be given in three installments starting from April 2019 but on the condition that consumers maintain their power factor (PF) above 0.9.  Atul Pande, President - VIA; Dr Suhas Buddhe- Secretary - VIA; Prashant Mohota, Chairman - VIA Energy Forum; Prafull Doshi, Immd Past President - VIA; Pravin Tapadia, Past President - VIA and others were also present.