MERC reviews tariff, allows incentive for power factor
tnn | Jan 5, 2019, 05:33 ISTNagpur: The Maharashtra Electricity Regulatory Commission (MERC) has reviewed its tariff order and allowed power factor incentive for industries. This has provided much-needed relief to them.
The commission has asked Maharashtra State Electricity Distribution Co Ltd (MSEDCL) to refund excess charges collected from industries from September 1, 2018 — when the new tariff order came into force.
However, MERC has imposed a condition on refund. They will get it only if they maintain power factor between 0.95 to 1 (lag or lead).
Addressing a press conference, Vishwas Pathak, director of MSEB Holding Company, said refund will be applicable only to those consumers who had maintained a healthy power factor from September 1. “We have granted time to industries to correct their power factor by March 31, 2019,” he added.
Four industrial associations had filed a review petition in MERC in which they demanded several changes including re-introduction of power factor incentive. MSEDCL had devised its own methodology for calculation of power factor and was fixing tariff. This had led to sharp increase in industrial power bills.
In the earlier tariff order there was no clarity on lagging power factor, which had led to confusion and sharp increase in the bills.
The commission has asked Maharashtra State Electricity Distribution Co Ltd (MSEDCL) to refund excess charges collected from industries from September 1, 2018 — when the new tariff order came into force.
However, MERC has imposed a condition on refund. They will get it only if they maintain power factor between 0.95 to 1 (lag or lead).
Addressing a press conference, Vishwas Pathak, director of MSEB Holding Company, said refund will be applicable only to those consumers who had maintained a healthy power factor from September 1. “We have granted time to industries to correct their power factor by March 31, 2019,” he added.
Four industrial associations had filed a review petition in MERC in which they demanded several changes including re-introduction of power factor incentive. MSEDCL had devised its own methodology for calculation of power factor and was fixing tariff. This had led to sharp increase in industrial power bills.
In the earlier tariff order there was no clarity on lagging power factor, which had led to confusion and sharp increase in the bills.
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