MERC’s power factor order good but confusing: VIA

Nagpur: While welcoming Maharashtra Electricity Regulatory Commission (MERCs) order on power factor (PF) incentive, Vidarbha Industries Association (VIA) said it was quite confusing. The association will send a letter to the commission seeking clarification on several points.
Chairman of energy cell of VIA, RB Goenka, who is also a director of MSEDCL, had filed a review petition with the commission seeking restoration of PF incentive. VIA had sought relief on four counts but MERC agreed on only two. The industrialists are still happy over it.

Addressing a press conference on Monday, Goenka said, “MERC has stated in clause A that effective date for inclusion of RkVAh lead (unit to denote the output of generators and transformers per unit hour) in the computation of average PF remains the same. The differential amount (difference between PF computed without RkVAh lead and with it) for the period September 1, 2018 to March 31, 2019 will be refunded to the consumers.”

“The MERC order was issued on January 2. Therefore, the period considered should be from September 1 to December 31, 2018. Going by this order, MSEDCL will continue to levy penalty on industries till March and then start refunding it from April. This does not make any sense,” he said.

The review order also states that consumers will be eligible for refund if PF for consumption of April 2019 is equal or above 0.9 (lead or lag). Commenting on this, Goenka said, “If a consumer’s capacitors break down in April, he will not get any refund. What has the power factor of April got to do with previous months.”

VIA president Atul Pande and Prashant Mohta said that due to the new tariff order the incentive given to industries of Vidarbha and Marathwada had reduced. “They should be restored and then only our tariff will come at par with that of Madhya Pradesh and Chhattisgarh,” they said.