Power consumers can claim 9.5% interest with refund: Maharashtra Electricity Regulatory Commission

Adani Electricity Mumbai Limited (AEML) consumers can now contest against inflated power bills and can also claim a refund with 9.5 per cent interest. The announcement was made on Friday by a quasi-judicial body of the Maharashtra Electricity Regulatory Commission formed after much hue and cry over escalated electricity bills.

The committee is going to investigate into what led to the hike. Additionally, the fact-finding committee will not only study AEML's billing pattern but also that of Tata Power, BEST and MSEDCL that distributes power in Mumbai. Earlier, the quasi-judicial body had asked for an explanation from Adani Power about the inflated bills on December 4.

"We have set-up a committee which will give a detailed report within three months. We have directed AEML that if any consumer has received an inflated bill with a hike of 10-20 per cent; and if their claim is correct then the company will have to refund/adjust in the next bill with 9.5 per cent interest," said Anand Kulkarni, Chairman, MERC. The rate of interest component is mentioned in the Electricity Act, 2003.

Besides, MERC will also monitor the bills that fall in the cycle of December 10-January 10. The authority will ask the companies to provide that data of the billing cycle and ensure that the hike is not more than three to four per cent. At present, people are getting bills that are over 20 per cent. The transgression in the bills was mainly found in the fuel adjustment charge and working of metres.

AEML replied to MERC saying that it was due to prolonged high temperature and high levels of humidity that the bills went high. Also, they are charging over Rs 900 crore as regulatory asset charge which has been pending for four years from the period 2009-13 that shall be calculated till 2019-20.

K Sharma, a resident of Bhayandar, said, "I asked AEML about the hike in tariff but did not get a fair answer. Now, I will give my earlier bills and demand for a refund. If not, I will change to another power distributor." An AEML spokesperson said, "AEML is committed to its customers and will continue to follow all guidelines and tariff norms laid down by the hon'ble MERC. We remain completely open and transparent to the fact-finding committee."

MERC has also directed the power distributors to create a common email ID apart from organising camps to address consumer issues of inflated power bills. However, AEML has stated that it is MERC that has cleared the proposal for the hike. The quasi-judicial body said that they cannot be held responsible for the ruckus as they are short staffed with only 54 people, and they had asked people and politicians to come forth through a public notice for raising objections.

ACTION TAKEN SO FAR

• The committee is going to investigate into what led to the hike in power bills.
   
• Additionally, the fact-finding committee will not only study AEML’s billing pattern but also that of Tata Power, BEST and MSEDCL that distributes power in Mumbai.
   
• The body had asked for an explanation from Adani about the bills on Dec 4. 
   
• MERC will also monitor the bills that fall in the cycle of Dec 10-Jan 10. It will ask the companies to ensure that the hike is not more than three to four per cent.