Madhya Pradesh: Discoms ask regulatory panel to recover Rs 36,812 crore from power consumers

Bhopal: If electricity consumers of Madhya Pradesh want the power distribution companies to become ‘Aatma Nirbhar’ then they would have to shell out Rs 25,000 each.

The power distribution companies (Discom) have filed a True Up petition with the MP State Electricity Regulatory Commission demanding recovery of Rs 4752.48 crore from consumers for the year 2019-20.

More worrying is the fact that True Up petition of past five years of power discoms are pending as well with the regulatory commission. Total sum of all these years amounts to Rs 36,812 crores.

In Madhya Pradesh there are around 1.5 crore electricity consumers including commercial and agricultural connections. Going by the total loss of Rs 36,812 crore to power companies, each consumer needs to pay Rs 25,000 to bring the companies out of loss.

Final decision lies with the regulatory commission on how much amount does it allow to be recovered from the consumer.

The electricity tariff is decided on an estimated expenditure submitted by power companies at the beginning of the year. These companies present the actual expenditure at the end of financial year before regulatory commission. The difference between the estimated and actual expenditure is presented before the commission and companies then take permission to realize the difference from consumers. This is done through a hike in electricity tariff.

Expert in electricity issues, Rajendra Agarwal has written a letter to Chief Minister Shivraj Singh Chouhan asking him to conduct inquiry as to what is the reason behind loss to power companies despite highest tariff rates in Madhya Pradesh.

Madhya Pradesh: Discoms ask regulatory panel to recover Rs 36,812 crore from power consumers
Madhya Pradesh: Discoms ask regulatory panel to recover Rs 36,812 crore from power consumers

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