Mumbai: ‘Slash electricity duty to 5% for residential consumers’

Mumbai: Reducing electricity duty from 16% to 5-6% would give much relief to residential consumers who are faced with huge bills since the lockdown, say consumer activists.

Savio Pinto, an electrical consultant, said electricity duty for industries has been slashed from 9.3% to 7.5%, while residential consumers pay a hefty 16%. "For the last few years there has been an annual increase in electricity tariff in Maharashtra. Considering the Covid-19 pandemic where unemployment has doubled from 13% to 27%, a reduction in electricity duty will give some relief to residential consumers," he said.

On July 22, consumer activists met Energy Minister Nitin Raut to demand reduction in electricity duty to 5%. They cited the recent 2% reduction in electricity duty to industries and demanded the same for residential consumers. Advocate Godfrey Pimenta said the government must take a sympathetic view and waive the duty at least for the lockdown period. Pimenta has organised a protest on August 15 against the "exorbitant" electricity bills.

Power Expert Ashok Pendse said the government should not just look at electricity duty, but a total "five components". "We have fixed charges, variable charge (energy), fuel adjustment charges, electricity duty and electricity cess. If the government were to reduce few or all of these charges, it would result in huge savings."

MSEDCL sources said fixed and variable charges and duties are fixed/approved by the Maharashtra Electricity Regulatory Commission and, hence, only the regulatory commission can make any changes.

Pinto said the government earns over Rs 10,000 crore in electricity duty and a reduction for residential consumers would result in the government having to forego around Rs 1,500 crore.

Source: The Times of India, Mumbai

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