Maharashtra State Electricity Distribution Co. Ltd.
Prakashgad, Plot No.G-9, Bandra (East), Mumbai – 400 051
(P) 26474753, (O) 26474211 / 26472131, Fax- 26472366,
REF. PR – 3 / TARIFF/27692 DATE: 07/07/2008
COMMERCIAL CIRCULAR No. 81
Subject: Revision in tariff – Implementation thereof.
The Maharashtra Electricity Regulatory Commission, by its Operative Order dated 31st
May 2008 has revised the tariffs for retail sale of electricity. Now MERC has issued the Detail
Tariff Order dated 20th June 2008. Hence, detailed guidelines as under are issued for
implementation of the said order.
1. DATE OF IMPLEMENTATION:
1.1. The revised tariffs will be applicable from June 1, 2008 till March 31, 2009.
1.2. In cases, where there is a billing cycle difference of a consumer with respect to the date
of applicability of the revised tariffs, then the revised tariff should be made applicable on
a pro-rata basis for the consumption.
1.3. The bills for the respective periods as per existing tariff and revised tariffs shall be
calculated based on the pro-rata consumption (units consumed during respective period
arrived at on the basis of average unit consumption per day multiplied by number of
days in the respective period falling under the respective billing cycle).
2. HT CONTINUOUS & NON-CONTINUOUS INDUSTRY:
2.1 HT industry/industries (group of more than one industry on express feeder) will be
deemed as HT I continuous industry, while all other HT industrial consumers will be
deemed as HT non-continuous industry.
3. FIXED/DEMAND CHARGES APPLICABLE FOR VARIOUS CONSUMER
3.1 The Commission has reduced the fixed charges/demand charges applicable for different
consumer categories, and correspondingly increased the energy charges, so that the bills
are more directly linked to the consumption.
3.2 This will provide certain relief to the consumers who have lower load factor, as the
consumers will be billed more for their actual consumption rather than the load, and the
licensees also have an incentive to ensure that continuous 24 hour supply is given to the
consumers. The Commission has opined that as and when sufficient power is available
and contracted by the licensees, the fixed charges can again be increased, and energy
charges reduced correspondingly.
3.3 Thus it is extremely important to bill the consumer strictly as per meter reading since the
revenue will be largely dependent on the energy consumption.
4. APPLICABILITY OF THE “BPL” CATEGORY:
4.1 The applicability of the BPL category tariffs has been modified slightly such that BPL
category will be available only to such residential consumers who have a sanctioned load
upto and less than 0.1 kW, and have consumed less than 360 units per annum in the
previous financial year.
4.2 The eligibility criteria has thus, been modified from a monthly limit of 30 units to an
annual limit of 360 units, so that it leaves some flexibility in consumption with the BPL
4.3 The applicability of BPL category will have to be assessed at the end of each financial
year. In case any BPL consumer has consumed more than 360 units in the previous
financial year, then the consumer will henceforth, be considered under the LT-1
Domesticl category. Once a consumer is classified under the LT-1 category, then he
cannot be classified under BPL category.
4.4 The categorisation of such BPL consumers will be reassessed at the end of the financial
year, on a pro-rata basis. Similarly, the classification of BPL consumers who have been
added during the previous years would be assessed on a pro-rata basis, i.e., 30 units per
month. All the new consumers subsequently added in any month with consumption
between 1 to 30 units (on pro rata basis 1 unit/day) in the first billing month will be
considered in BPL Category.
4.5 In case the consumer is involved in theft of electricity or unauthorized extension, the said
consumer will not be eligible for tariff of BPL category. The list of such
consumers(involved in theft of electricity or unauthorized extension) shall be immediately
given to the local IT Centres for their further necessary action.
4.6 In case any consumer under BPL category consumes more than 72 units (72 units are
the maximum consumption that is possible for 0.1 kW load availing power 24 Hrs per day
for the whole month i.e. 0.1 x 24 x 30 = 72 kWh) in any month, he will be automatically
cease to be consumer under BPL category. The tariff for such consumer will be LT I
5. APPLICABILITY OF TARIFF TO TELEPHONE BOOTH OPERATED BY
5.1 The Commission has modified the applicability of tariff to telephone booths operated by
handicapped persons and such booths will henceforth, be charged as per tariffs
applicable to the LT-1 Residential (Domestic) category.
6. AGRICULTURAL TARIFF:
6.1 The tariff for LT & HT Agriculture consumers has been retained at the existing levels.
6.2 MSEDCL should strive to ensure 100% metering of all consumption, including agricultural
consumption. The Commission has opined that in case 100% metering is difficult at
individual level, then the same may be done at feeder level and DTC level.
7. LT-II NON DOMESTIC CATEGORY:
7.1 The Commission has done away with LT-IX category, the separate consumer
categorisation for shopping malls and multiplexes. All these consumers will henceforth,
be classified under LT-2 Non Domestic category, as was being done earlier.
7.2 Three new sub-categories have been created under LT-2 Non Domestic category on the
basis of sanctioned load, viz., 0 to 20 kW, above 20 kW upto 50 kW, and above 50 kW
sanctioned load. The Commission has determined the tariffs for these two sub-categories
at higher levels.
8. HT- II COMMERCIAL CATEGORY:
8.1 The Commission has created a new category, viz., HT-II Commercial, to cater to all
commercial category consumers availing supply at HT voltages, and currently classified
under the existing HT-I Industrial or LT-IX (multiplexes and shopping malls).
8.2 This category includes consumers of electricity such as Educational Institutions,
Institutions like Charitable/Public Trusts/Religious Institutions, Hospitals run/aided by the
Government/Municipal Corporation, and Hospitals owned or controlled by private
individual or institutions or those owned or run or controlled by public trusts, religious,
charitable institutions taking supply at High Voltage.
8.3 This category also includes consumers taking electricity supply at High Voltage for
commercial purposes, including Hotels, Shopping Malls, film studios, cinemas and
theatres, including multiplexes,
8.4 This category will include Hospitals getting supply at HT voltages, irrespective of whether
they are charitable, trust, Government owned and operated, etc.
8.5 The tariff for such HT-II commercial category consumers has been determined higher
than the tariff applicable for HT-I industrial, in line with the philosophy adopted for LT
commercial consumers. Such categorisation already exists in other licensee areas in the
State, and is hence, being extended to MSEDCL licensee area also.
8.6 This is a new category which will also include consumers of the erstwhile LT-IX
(multiplexes and shopping malls) category. Field Officers are requested to carefully
modify the categories for the consumers who are now covered under HT II Commercial
9. NEW CATEGORY LT-IX (Crematoriums and Cremation and Burial Grounds):
9.1 The Commission has created a new category, viz., LT IX, which will include all
crematoriums and cremation and burial grounds, irrespective of whether these are
electric crematoriums, or otherwise, and the tariffs have been specified at lower levels.
This is in line with the other distribution licensees in the State, where this category
9.2 This lower tariff will be applicable only to the portion catering to such activities, and in
case part of the area is being used for other commercial purposes, then a separate meter
will have to be provided for the same, and the consumption in this meter will be
chargeable under LT-II Commercial rates.
10. THE TIME OF DAY (ToD) TARIFF:
10.1The Time of Day (ToD) tariffs will be applicable compulsorily to HT I Industry, HT II
Commercial, HT IV Public Water Works, and will exclude HT III Railways, HT V
Agriculture, HT VI Group Housing Societies and HT VII Mula Pravara Electric Cooperative
Society, which is a licensee.
10.2The Time of Day (ToD) tariffs will be applicable compulsorily to
a) LT II Non-Domestic above 20 kW.
b) LT III Public Water Works and
c) LT –V Industrial consumers above 20 kW.
Further this tariff is optionally available to LT II Non- Domestic below 20 kW and LT V
Industrial below 20 kW.
10.3The Commission’s ruling in the MYT Order, since MSEDCL is yet to achieve 100% MD
metering for LT V industrial consumers above 20 kW (around 97% completion has been
indicated by MSEDCL till date), the MD tariffs for LT V industrial consumers will not be
10.4Till the MD meters are installed, MSEDCL will be allowed to charge only the earlier HP
based tariffs, though the revenue has been assessed based on MD based tariffs.
10.5MSEDCL is thus allowed to charge MD based tariff immediately on completion of 100%
metering. All the Zonal Chief Engineers to immediately inform the IT centers under their
jurisdiction about such completion and may also send a certificate immediately to that
effect to Chief Engineer (Dist).
10.6It is informed that since MD based tariff is most scientific / realistic and is also likely to
generate a higher revenue, all out efforts may be made to ensure that MD based
metering and billing is immediately resorted to.
11. DEMAND CHARGES OF CPP HOLDERS:-
11.1Additional demand charges of Rs.20 per kVA per month would be chargeable for the
standby component for CPPs, only if the actual demand recorded exceeds the contract
12. HT- VI (RESIDENTIAL AND COMMERCIAL COMPLEXES) CATEGORY:
12.1The Commission reiterates that HT-VI Residential would be applicable only to the Group
12.2It is directed to ensure metering arrangements so that consumers currently classified
under HT-VI Commercial Category, and requiring a single point supply, will have to either
operate through a franchise route or take individual connections under relevant category.
13. ADDITIONAL SUPPLY CHARGE:
13.1The Hon. Commission has discontinued the concept of “Additional Supply Charge” vide
the above said Operative Order.
14. METHODOLOGY FOR REFUND OF “RLC”;
14.1The refund has to be made in the same proportion as the contribution of RLC by the
14.2Since MSEDCL has not refunded the RLC for the bills issued till date during the period
May 2007 to August 2007, the Commission has determined the monthly RLC refund in
such a manner that the entire refund of Rs. 500 crores occurs over the balance seven
months of the year, as computed above. This will also enable MSEDCL to overcome any
liquidity constraints, which could occur if MSEDCL were directed to combine the refund of
past three months with that due in August 2007, and give the balance refund thereafter.
14.3The Commission has directed that the refund of the RLC collected by MSEDCL is to be
undertaken on a one-to-one basis.
14.4The levy of RLC had been continued for a period of around 2.75 years, from December
1, 2003 to September 30, 2006.
14.5During this period, several new consumers would have been added to MSEDCL’s
consumer base, who would either have contributed RLC for a period lower than 2.75
years or may not have contributed at all, since they would have been consumers for only
part of this period
14.6By ordering that the refund of RLC be done on a one-to-one basis, the Commission is of
the view that on the one hand, consumers who have contributed to RLC would get
refund in the same proportion as their contribution, while consumers who have not
contributed to RLC, would not be eligible for any refund. This would not adversely affect
14.7The refund of RLC will be in absolute terms, viz., Rs/month, and not in terms of
paise/kWh of consumption, so that the consumers are eligible for a fixed amount every
month, irrespective of their consumption, minimising the need for undertaking detailed
truing up of this refund amount. It would also ensure that no injustice is done to
consumers who have shifted/are planning to shift to captive consumption subsequently.
14.8Since Rs. 500 crore is to be refunded out of the total RLC collection of Rs. 3227 crore,
the refund in FY 2008-09 will be in the same proportion of the contribution by that
consumer. The percentage of refund works out to 15.5%. This will also ensure that
consumers get the refund in the exact same proportion as their consumption, and
consumers who have paid RLC for a lower duration, would get lower refund on a monthly
basis, such that all the consumers get their complete refund over the same period of
14.9Since the effective billing period remaining in FY 2008-09 is nine months – from July
2008 to March 2009 (considering that MSEDCL will have to incorporate this methodology
into the billing software), MSEDCL is required to ensure that the entire refund of Rs. 500
crore is undertaken in the balance nine months, by ensuring proportionate refund.
However the refund of RLC amount is directly linked with the recovery of the same
14.10The RLC refund will be given to the individual consumer through credit in the bills and it
may please be noted that no manual refund on account of RLC should be effected at
14.11MSEDCL is required to ensure that the RLC is refunded in the time-frame provided by
the Commission, given that the amount is being recovered through the base ARR from
all the consumers. In case MSEDCL delays the refund beyond the billing month of July
2008, then MSEDCL will be liable to pay interest at the rate of 6% per annum to the
consumers on the amount of refund due to them, for the period of delay. This interest
paid, if any, will not be recoverable from the ARR.
15. OTHER PROVISIONS:
15.1The rebates/incentives and disincentives have been retained at the existing levels.
15.2LT I category is applicable to premises exclusively used for worship such as Temples,
Gurudwaras, Churches, Mosques, etc. Provided that Halls, Gardens or any other portion
of the premises that may be let out for consideration or used for commercial activities
would be charged at LT-II tariff as applicable and for this use separate connection for LT
II category should be given.
15.3ToD Tariff is now compulsory to LT III – Public Water works. Also ToD tariff is available
to LT II Non-Domestic & LT V – Industrial above 20 kW, and optionally available to LT II
Non-Domestic upto 20 kW having ToD meter installed. Billing demand for these
categories having MD based tariff should be charged as under:
Monthly Billing Demand will be the higher of the following:
a) 65% of the Actual Maximum Demand recorded in the month during 0600
hours to 2200 hours
b) 40% of the Contract Demand
15.4“Temporary Supply” should be given only for two years as per definition of MERC Supply
15.5LT VII – Temporary Connections – Other purpose tariff category will be applicable also in
the event of extending supply to consumers availing temporary supply at HT voltages.
For proper implementation of the revised tariff, all the I. T. management
departments / field officers shall follow guidelines given below :-
1. The revised tariffs are to be applied from 1st June, 2008 till 31st March, 2009.
2. MSEDCL is required to submit the report of installation of MD meters for LT-V
category consumers having sanctioned load above 20 KW to the Hon.
Commission. All the field officers are therefore, directed to submit the status of
installation of these meters to Chief Engineer (Distribution) immediately for
onward submission to MERC.
3. For consumers under LT II Non-Domestic category, the billing should be as
envisaged in this tariff order i.e. LT MD ToD tariff. Necessary changes may be
carried out at local level to incorporate the same and implement the same.
4. The CGM (IT) shall make necessary changes immediately in RR sheet and billing
format and other relevant documents.
5. The Commission has retained the assessment of un-metered Ag. Consumption at
the existing norms of 1318 hours per HP per year for want of better quality
information. Field Officers are directed to check that all Ag. metered consumer’s
readings are taken in time and given to I.T.
6. The field officers are directed to ensure that the necessary D. T. C. metering and
feeder metering arrangements are completed by the field officers and the
feeder-wise energy related information with consumer data base is complied and
submitted to the CGM (IT) by the end of July 2008 for onward submission to
7. MSEDCL has been directed to reduce the distribution loss by 4 % during each
year of control period through a combination of both commercial and technical
losses. Considering a loss reduction of 4% each in FY 2007-08 and FY 2008-09
as stipulated in the MYT Order, the distribution loss level to be considered for FY
2007-08 and FY 2008-09 works out to 26.2% and 22.2%, respectively.
8. HT-VI residential tariff would be applicable only to group housing societies.
Consumers classified under HT-VI commercial category and requiring a single
point supply will have to either operate through a franchisee route or take
individual connections under relevant category. All the Zonal Chief Engineers are
once again directed to report the compliance of this directive immediately to the
C. E. (Commercial).
9. The Commission has approved the HT and LT tariff booklets effective from 1-6-
2008. Copies of these tariff booklets are enclosed herewith (upto Zonal level
only). Adequate copies of these booklets should be printed and made available
up to Section Level for sale to the consumers at the printed price.
10. All other relevant issues are covered in the appended tariff booklet which is
enclosed herewith. In case of any clarification in this order, the field officers
may contact the Zonal Executive Directors, Zonal Chief Engineers , C. G. M. (IT)
or C. E. (Commercial).
Apart from the above instructions, other general instructions are given by the
Hon. Commission in the Tariff Order dated 20 June 2008. All the Head Of the
Departments in Head Office and Zonal Chief Engineers are directed to implement
the directives (issues pertaining to them) in the said tariff order by Hon. MERC
within the stipulated time.
All field officers are therefore requested to take due note of the revised tariff and
should follow the same hereafter and compliance of the action taken report should be
informed to Chief Engineer (Commercial).
It may please be noted that this Circular is issued in line with the provisions of the
MERC Operative Order dated 31st May, 2008 (in Case no. 72 of 2007) and the
Errata/Corrigendum dated 05th June, 2008 and Detailed Tariff Order dt. 20th June 2008 in the
same case. In case of any doubt/clarification, you may refer the MERC Detailed Tariff Order
dt. 20th June 2008.
Encl :- Tariff Booklets.
Director (Operation), MSEDCL
The Chief Engineers of all O&M Zones, MSEDCL.
The CGM (IT):
You may please release the modified software immediately and also instruct the IT centers about
Copy Submitted with respect to:
1) The Managing Director, MSEDCL.
2) The Director (Finance), MSEDCL.
3) The Director (V&S), MSEDCL
The Executive Directors-I/II/II (Com-Dist)
The Executive Director (Dist.-Corporate Planning) MSEDCL, Mumbai
Copy to :-
The All Superintending Engineer, MSEDCL.
The All Executive Engineer, MSEDCL.
The All Dy. Executive Engineer, MSEDCL.
The All Asstt. Engineer, MSEDCL.
Copy s. w. r. to:
The Secretary, Maharashtra Electricity Regulatory Commission, Mumbai,
Copy s. w. r. to:
The Managing Director, MSEB,Holding Company Ltd., Mumbai,
The Managing Director, M.S.E.T.Company Ltd., Mumbai,
The Managing Director, M.S.E.P.G.Company Ltd., Mumbai,
The Director, (Operations), M.S.E.D.Company Ltd., Mumbai
Copy f. w. c. to:
The Chief Engineer (Distribution) / (IR) / ( Load Management) / (Special Project Cell ) /
(APDRP)/ Power Purchase / Infrastructure Plan/AMR, MSEDCL, Mumbai,
The Chief Engineer (TRD), MSEDCL, Nasik,
The Company Secretary , MSEDCL, Mumbai,
The Chief General Manager (Tech. Estt.), MSEDCL, Mumbai,
The Chief General Manager (Finance & Acctt. ) MSEDCL, Mumbai,
The Chief General Manager (IA) MSEDCL, Mumbai,
The Chief General Manager (Personnel ) MSEDCL, Mumbai,
The General Manager (SB) / (Corp. Account ), MSEDCL, Mumbai,
The Chief Legal Adviser, MSEDCL, Mumbai,
The R. A. O.; Government Audit, Prakashgad, Mumbai,
The C. I. & P. R. O.; Mumbai,
The Superintending Engineer (TRC) MSEDCL, Mumbai.
The Technical Assistant to Managing Director, MSEDCL, Mumbai,
The E.O. (HRD), MSEDCL , Mumbai,
The Dy. Director (V, S & E), MSEDCL, Pune / Nagpur / Mumbai
The G.M. (Inspection), MSEDCL, Mumbai,
The G.M., Computer Centre, MSEDCL, Mumbai,
System Analyst, Computer Centre, MSEDCL,
Programmer, Computer Centre, MSEDCL,
All Flying Squads, MSEDCL,
Copy f. w. c. to:
Vice President-Bhiwandi Operations,
Torrent Power Ltd.,
Old Agra Road, Anjur Phata, Bhiwandi-421 302.
C:\Documents and Settings\CIWE3\Desktop\Comm_Circular_Tariff_June08_Final1.doc