Reducing electricity duty from 16% to 5-6% would provide a great deal of relief to residential consumers who have been dealing with big bills since the lockout, consumer activists claim.
Savio Pinto, an electrical consultant, said that electricity tariffs for factories have been reduced from 9.3 per cent to 7.5 per cent, while residential consumers pay a high 16 per cent. “There has been an annual rise in electricity tariffs in Maharashtra over the last few years. In view of the Covid-19 pandemic, where unemployment has doubled from 13% to 27%, a reduction in electricity duty would provide some relief to residential consumers, “he said.
Power activists met with energy minister Nitin Raut to demand a 5% cut in electricity duty. They cited the recent 2% cut in electricity duty on industry and called for the same for residential consumers. At least for the shutdown time, Advocate Godfrey SLIM said that the government would take a sympathetic view and waive its obligation. A rally against the “exorbitant” energy bills took place on 15 August.
Power expert Ashok Pendse said the government would look not only at the electricity obligation, but at a total of “five components.” “We have fixed charges, variable charges (energy), fuel adjustment charges, electricity duty and power loss. Unless the government were to reduce only a few or all of these costs, it would result in massive savings.
MSEDCL sources suggested that fixed and variable charges and duties are set / approved by the Maharashtra Electricity Regulatory Commission and that only the regulatory committee can make any adjustments.
Pinto said the government receives more than Rs 10,000 crore in electricity duty and a cut for residential customers will result in the government having to forego about Rs 1,500 crore.
