Electricity Bills In Maharashtra To Increase By 20-30% From This Month
Mumbai, 9th July 2022: As of this month, power utility companies will begin charging Fuel Adjustment Charges (FAC), which the Maharashtra Electricity Regulatory Commission (MERC) approved on June 1. These charges could cause monthly electricity bills to increase by up to 20%.
It will be a significant hardship for the 10.5 lakh BEST customers, over 7 lakh Tata Power customers, 29 lakh Adani Electricity customers, and 2.8 million MSEDCL customers in Maharashtra.
There might be a minimum increase of 10% and a maximum increase of 20% for all consumer groups, including residential, commercial, industrial, etc. The FAC is dependent on the fluctuating cost of fuel, coal, or gas. During the epidemic, it wasn’t billed to customers for the previous two years.
The FAC will be calculated for March, April, and May and collected throughout the course of five months, up to November.
According to a source, “The July bill will reflect the first FAC.”
A top MSEDCL official claimed, “The cost of imported coal to create power was considerable, as were the operational costs of gas-based power stations, as a result of which FAC was levied.”
During Covid, MERC had directed all power companies to create “FAC stabilising fund” to meet fuel costs. “Now, even if FAC is levied, it will be on a quarterly basis. The regulatory commission will allow recovery of the cumulative amount equally over the next three months,” a source from MERC added.
