Office of the Technical Director (EHVP-Com) Maharashtra State Electricity Board  “Prakashgad”, Bandra (East), Mumbai -400051.

REF.: PR-3/SUBSIDY/32032                                    DATE: 03/10/2003

DEPARTMENTAL (COMMERCIAL) CIRCULAR NO. 685

Subject:           State Government Subsidy in tariff applicable to agricultural & powerloom consumers for the year 2002-03 ---- Implementation thereof.

            For the year 2002-03, the State Government has proposed following subsidy in tariff applicable to agricultural & powerloom consumers.

a)                  General subsidy in tariff to agricultural consumers,

b)                  General subsidy in tariff to powerloom consumers,

c)                   Additional 33.33% subsidy in tariff to agricultural consumers situated in drought affected villages,

d)                  Additional subsidy in tariff to metered powerloom consumers for the year 2001 – 02 on par with subsidy in tariff as was available to unmetered powerloom consumers during the said year.

            The Maharashtra Electricity Regulatory Commission has approved the said proposal of the State Government. As per Interim Order dated 26/08/2003, the Hon’ble Commission has inter – alia permitted the Board to pass on the subsidy amount to the respective consumers from the agricultural & powerloom category, provided the State Government appropriately compensates the Board for the loss of revenue as may be incurred by the Board in passing the above mentioned subsidy to the respective eligible consumers. So far, the Board has received from the State Government, by way of book adjustment, only an amount equivalent to the loss of revenue on account of general subsidy in tariff mentioned at sr. no. (a) & (b) above and balance amount of compensation on account of loss of revenue due to subsidy mentioned at sr. no. (c) & (d) above is awaited. In such circumstances, it has been decided to pass on only the general subsidy in tariff to agricultural & powerloom consumers at this stage. A Table indicating the prevailing tariff (as determined by the Hon’ble Commission) during the year 2002-03, subsidy as per sr. no. (a) & (b) above (in the said tariff) given by the State Government and the effective rate payable by the consumers after considering the said subsidy is enclosed for information. The Hon’ble Commission has further directed the Board (1) to refund the subsidy amount to all consumers in the subsidized categories who have already paid their bills and (2) to clearly indicate in its bill proforma (i) the tariff determined by the Commission, (ii) State Government subsidy, the rate & the period thereof, and (iii) the net amount payable by the subsidized categories of consumers. Accordingly, instructions have been given to the Director (IT) for suitable necessary action and it is expected that the amount of subsidy payable to respective eligible consumer will reflect in the ensuing energy bill as per the billing cycle. The said subsidy amount will be credited into the consumer’s account if he has paid the energy bills as per the prevailing tariff during the year 2002-03 and balance will be carried forward for adjustment against future energy bills. Otherwise the said amount of subsidy will be adjusted against the arrears outstanding against the consumer. In this regard, it is further to clarify that, the guidelines in respect of levy of delayed payment charges & interest to these consumers during the year 2002 – 03 are being issued separately. 

            As far as the additional subsidy mentioned at sr. no. (c) & (d) above, i. e. 33.33% subsidy in the prevailing tariff for agricultural consumers situated in drought affected villages and subsidy in tariff to metered powerloom consumers for the year 2001 – 02 at par with subsidy in tariff given to unmetered powerloom consumers during the said year is concerned, detailed instructions will be issued subsequently after receipt of appropriate compensation from the State Government. It should however be noted that the said additional subsidy is not be passed on to the eligible consumers at this stage, till further instructions from this Office.

            Being on this subject, it is further to clarify that, for the year 2003-04, the State Government has not declared any subsidy in tariff to agricultural / powerloom or any other categories of consumers.  As such, agricultural / powerloom consumers have to pay the current energy bills as per the prevailing tariff only and for any default in payment of energy bills by these consumers, power supply has to be disconnected, subject to restrictions, if any, as may have been informed by the Head Office.

TECHNICAL DIRECTOR (EHVP-COM)