The 10 lakh power consumers of BEST may have to shell out more tariff from January 1 as the Maharashtra Electricity Regulatory Commission (MERC) on Wednesday cleared decks to recover the deficit of its transport wing for the financial years 2004-05 to 2008-09. The increase in tariff will be around 2.5 per cent.
“The total amount of transport deficit for the period from FY 2004-05 to 2008-09 allowed by the commission to be recovered through the tariffs of the electricity distribution business amounts to `1,187.71 crore. BEST may propose an appropriate recovery mechanism of the above amount in its MYT (Multi Year Tariff) petition for the control period from FY 2013-14 to FY 2015-16 (sic),” reads the MERC order.
On November 29, the MERC had held a public hearing to discuss the issue of cross subsidy in BEST as residents of south Mumbai are of the opinion that they will have to bear the burden of all public buses in the city.
While approving the deficit recovery, the MERC also suggested that the BEST should take steps to ensure its transport division recovers from losses and becomes self-sufficient over a period of the next five years. The same can be done by BEST through increase in bus fares, improving operational efficiencies or any other method to generate revenue.
Justifying the order, MERC said, “The commission has studied all the submissions made by BEST as well as the judgment of the Supreme Court in this regard. The commission is of the view that the import of the Supreme Court’s judgment in this matter is that as per the Electricity Act, 2003, BEST’s electric supply business can subsidise the bus transport business, since it is a local authority that has been engaged in the business of electricity distribution since before the commencement of the Electricity Act, 2003.”