A family residing in an apartment-like arrangement on plot jointly owned by siblings, had received bill of Rs 3,020 for the month of August 2023, for consumption of 279 units of electricity. For the family, it paid Rs 10.82 per unit then. This year, the electricity consumption of 328 units has resulted in total bill of Rs 4,200 for the month of August. Thus, the family is paying Rs 12.80 per unit now, that is, Rs 1.98 per unit more as compared to what it paid as electricity bill for the same month last year. * A middle-class man residing in a flat had electricity consumption of 104 units last year as reflected in the bill for the month of August. The total electricity bill he had received and paid then was Rs 830. In layman’s terms, he paid Rs 7.98 per unit last year. This year, his bill for the month of August is Rs 900, with a consumption of 103 units. But, for him, he has to pay Rs 8.73 per unit despite having consumed one unit lesser than that last year during the same month. Both these are true cases of the consumers of Maharashtra State Electricity Distribution Company Limited (MSEDCL), from Nagpur city.

 

These represent a harsh reality of how the high power tariff has been burning deeper hole every year in the pockets of residential consumers. Though the State-run power distribution utility might have ‘n’ number of technical explanations to offer, the reality of bill payment remains the same for laypersons -- average cost of electricity supply per unit has gone up! For a layperson, it does not matter if MSEDCL bill actually comprises of fixed charges, energy charges, wheeling charges per unit, fuel adjustment cost (FAC), electricity duty. For him, it does not matter if the tariff for different slabs of consumption is different. What matters for him is how much he is paying for per unit consumption of electricity in totality. And, it is this area, where a common man, a residential consumer, realises that electricity tariff has been increasing over the years, and that there is no relief. Not many can boast of proportionate hike in monthly salary or income to absorb these tariff hike shocks, no matter the explanations. And, this sad reality has been building up discontent and disappointment in the famed middle-class, whose votes every political party eyes. For the understanding of common man, the revised power tariff as applicable from April 1, 2024, comprises Rs 128/- as fixed charges for Low-Tension (LT) Residential 1-Phase category.

 

There are different slabs according to which per unit tariff and FAC rate differ. For 0-100 units consumption slab, tariff is Rs 4.71/- per unit and FAC is levied at the rate of 45 paise per unit. For 101-300 units slab, tariff is Rs 10.29/unit and FAC is 80 paise/unit. Thus, between these two slabs, the tariff difference is Rs 5.58/unit and FAC rate difference is 35 paise/unit. For 301-500 units slab, the tariff is Rs 14.55/unit and FAC is Rs 1.10/unit. For the consumption slab of 501 units and above, the tariff is Rs 16.64/unit and FAC is levied at the rate of Rs 1.15/unit. The difference in tariff between 101-300 units and 301-500 units slabs is Rs 4.26/unit, and that between 301-500 units slab and 501 units and above slab is just Rs 2.09/unit. The difference in FAC between 101-300 units and 301-500 units slabs is 30 paise/unit, and that between 301-500 units slab and 501 units and above slab is just 5 paise/unit. Apart from these, wheeling charges are levied at the rate of Rs 1.17/unit.

 

The fixed/demand charge for 3-Phase supply is Rs 424/month. The overall impression one gets from the said data printed on electricity bill of every residential consumer is that MSEDCL wants to encourage people to either stay below 100 units slab or to cross 101-300 units slab to get some relative advantage. But, the fact is that most of what is known as middle-class comes under 101-300 units consumption slab. And, there is massive discontent in this segment regarding power tariff. For, as per revision in tariff applicable from June 1, 2015, the tariff for 101-300 units consumption slab was Rs 7.21 per unit. From April 1, 2024, the tariff is Rs 10.29/unit in the same slab. Thus, in nine years, the tariff for this particular slab has increased by Rs 3.08/unit. And, this does not include fixed charges, wheeling charges per unit, FAC, and electricity duty applicable today. In comparison, the adjoining State of Chhattisgarh has easy-on-pocket tariff structure for residential consumers.

 

There, domestic consumers are divided into five slabs -- 0-100 units, 101-200 units, 201-400 units, 401-600 units, and above 601 units. As far as fixed charge is concerned, it is levied at the rate of Rs 20/kW per month for sanctioned load up to 5 kW, Rs 30/kW per month for sanctioned load above 5 kW but up to 10 kW, and Rs 40/kW per month for sanctioned load above 10 kW. The energy charge is Rs 3.90/unit for 0-100 units slab, Rs 4.10/unit for 101-200 slab, Rs 5.50/unit for 201-400 slab, Rs 6.50/unit for 401-600 slab, and Rs 8.10/unit for above 601 units consumption of electricity. Thus, while tariff in Maharashtra ranges from Rs 4.71/unit to Rs 16.64/unit for residential consumers in different slabs, that in Chhattisgarh ranges from Rs 3.90/unit to Rs 8.10/unit for consumers in different slabs. In any case, there is a difference in tariff in the range of 81 paise/unit to Rs 8.54/unit between lowest to highest tariff in the category of residential consumers in Maharashtra and Chhattisgarh. How can a relatively younger State like Chhattisgarh afford keeping power prices lower than those in Maharashtra? The question haunts ordinary power consumers. But, the story does not end here. The case of industrial consumers is yet to be discussed. (To be continued) 

 

 

The higher power tariff being charged by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), may affect the adoption of electric vehicles (EV) in the State. People have been quick in adopting the EVs and many households own at least one electric vehicle. Even the electric four-wheelers are gaining popularity. Many people who opted for EVs are now staring at high power bills as they use electricity to charge the vehicles, and tariff is on higher side.

 

Gradually, this realisation might turn high power tariff into a barrier in transition from polluting to non-polluting means of transport even as the country has committed to attaining the goals of cutting down on emissions. A bare analysis reveals that electricity bills went up by 7.25 per cent in the financial year 2023-24. Now, in 2024-25, the tariff is set to increase by an additional 7.50 per cent. Apart from that, even the fixed charges are heading northwards. These charges may see an increase of 10 per cent annually as MSEDCL will try to adjust its gross revenue to plug the deficit.