MERC Approves BEST and Other Electricity Companies Tariff Petition with Wheeling Charges

MERC has passed order of approving BEST and Other Electricity Companies Tariff Petition along with Wheeling Charges. As per Electricity Act Wheeling Charge can only be applicable to wheeling for example say you buy electricity from Tata and that is supplied through wires of Adani . Even the opinion of Solicitor General of India is the same .

Solicitor General of India's Opinion is clear that Wheeling charge can only be applicable for Open Access customer that is for those customer who get electricity transported through distribution wires of some other electricity distributor and is not applicable to retail consumer who are supplied electricity directly .


What is Wheeling?
– Section 2 ( 76 ) defines Wheeling as operation whereby the distribution system of distribution licensee are used by ANOTHER PERSON for transporting electricity .

What is Wheeling Charge ?
Wheeling charge is charge paid by that person for using distribution wires of another distribution licencee . For example if Tata Power supplies their consumer electricity through distribution wires of Adani than Tata Power or that consumer will have to pay wheeling charge to Adani for wheeling the electricity .

What is the dispute ?
Maharashtra Electricity Regulatory Commission ( MERC ) through their order have approved charging of wheeling charges on Retail Supply Consumer who are supplied electricity by a electricity distributor through their own distribution wires . that is wheeling charge is being levied when there is no wheeling being done. This charge is illegal as per law . Why ? Because wheeling charges are applicable only if distribution wires of a distributor is used by another distributor to supply electricity to their consumers .

What provision of law are violated
– Charging wheeling charges to direct retail electricity consumers violates Section 2 (76 ) (70 ) (47) (15 ) . Section 42 (2 ) ( 3 ) ( 4 ) Section 45 Section 51 , Section 61 ( d ) and Section 86 ( 2 ) of Electricity Act a statute that has been made by Act of Parliament . There is also violation of MERC Regulations , definition (16 ) ( 32 ) ( 75 ) Regulation 72 part G and Regulations 80 and 82 Part H . .

As per opinion given by Solicitor General Of India , Mr Gopal Subramanium to query posed by Central Electricity Regulatory Commission , Opinion iii . ” OPEN ACCESS that is non discriminatory provision for use of transmission line or distribution line , whereas WHEELING is operation by way of which distribution system and associated facilities are used by another person ” .

There is brazen violation of many provisions of the Electricity Act and MERC regulations . With utmost humility and great respect we are of view that Regulator MERC itself is violating provision of Electricity Act and MERC Regulations .

How much are electricity consumers in Maharashtra paying as Wheeling Charge
– An average residential consumer may consume around 300 units per month @ approx Rs 2/- per unit , they would approx pay additional charge of around Rs 600/- per month or Rs 7200/- per month . A commercial consumer who may be consuming 3000 units per month may pay additional charge of nearly Rs 6000 per month or Rs 72000/- per year . BEST undertaking a small distributor with just 10 lakhs consumer has budgeted collection of Rs 860 crores per annum and the number of electricity consumer in Maharashtra may be nearly 1.5 crores so Wheeling Charges being collected per annum could exceed Rs 5000 crores .

What you can do about it .
– Oppose Wheeling Charges that could be illegally being levied on retail consumers of electricity . Join Indian Hotel and Restaurant Association ( AHAR ) in its legal fight to alleged illegal wheeling charges being levied on retail electricity supply consumers in Maharashtra ( No other electricity distributor in other State in India is charging wheeling charges on direct retail supply consumers )
* Please pass this message to as many people as you can so that public is made aware of the alleged illegal wheeling charge .