Experts said that power utilities are paying fixed charges without full utilization of power
GN Bureau | May 1, 2017
The electricity charges in Mumbai are the highest in entire Maharashtra and experts are wondering why the prices have not come down despite the fall in coal prices.
For consumption between 0-100 units, consumers in Maharashtra pay the lowest unit rate of Rs 4.16 as against Rs 1.10 in Pondicherry. The maximum rate among highest slab consumers in Maharashtra is Rs 13.63 while it is Rs 2.55 in Daman.
At a seminar organised by Urja Prabodhan Kendra (UPK), an energy think-tank, power sector experts and faculty of SP Engineering College discussed about ‘Rising Electricity Tariff – Analysis and Way Out’.
Calling for CAG audit of private utilities like Tata Power and Reliance Energy for rising electricity costs the experts said that the current system of tariff fixing is giving rise to the exploitation of consumers and should be replaced by a real competitive system which measures efficiency of operation.
Experts said that utilities are paying fixed charges of several hundred crore without full utilisation of power.
An expert said: “It calls for investigation as to why the electricity prices have not reduced when there has been a reduction in coal prices of up to 40%? Proper mix of long, medium and short term power purchase agreements (PPAs) have not been kept, resulting in higher prices. This needs to be corrected immediately.”
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