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 MYT for FY 20-21 to 24-25
• MERC, in exercise of the powers
vested in it under Sections 61, 62
and 86 of the Electricity Act, 2003

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(EA, 2003) and all other powers
enabling it in this behalf, and after
taking into consideration all the

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submissions made by MSEDCL and in
the public consultation process, and
all other relevant material, has
approved the Truing-up of ARR for FY
2017-18 and FY 2018-19, Provisional
Truing-up of ARR for FY 2019-20 and
ARR and Tariff of Control Period FY
2020-21 to FY 2024-25 vide Order
in Case No. 322 of 2019 dated 30
March 2020. 2
MERC’s Philosophy – Reduction in Tariff

• Public Consultation Process –

Consumers expressed that MSEDCL
Tariff for I & C Category is higher than

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many other state
• Effect on competitiveness of Industry due
to high Tariff

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• Protection of Consumer’s Interest
• The provision of electricity is an essential
Driver for Development & Influences
Social & Economical Change
• Increase in Availability of Power , Robust
Transmission Network & Projected
Revenue surplus
• Reduction in Tariff with Marginal 3
increase in Fixed charges
 Reduction in Tariff
• MERC has approved average tariff reduction of
7 % for FY 2020-21 and almost flat tariff for
remaining four years of Multi Year Control

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Period i.e. up to FY 2024-25.
• Reduction in Industrial and Commercial sector
by 10 to 15 %.

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• Introduction of concept of Incremental
Consumption Rebate of Rs 0.75/kVAh .
• Bulk Supply Discount at rate of 2% to 1% on
energy charge including FAC (in excess of 1 lakh
units per month)
• All other incentives including Load Factor
Discount, Prompt Payment Discount and the
TOD Benefits are retained.
• Tariff of Residential consumers is reduced by
5%. 4
 MYT REGULATION 2019
• Regulation 71- Separation of Accounts of Distribution
Licensee
Every Distribution Licensee shall maintain separate accounting

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records for the Distribution Wires Business and Retail Supply
Business and shall prepare an Allocation Statement to enable the

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Commission to determine the Tariff separately for:
(a) Distribution Wires Business;
(b) Retail Supply of electricity:
Provided that in case complete accounting segregation has not
been done between the Distribution Wires Business and Retail
Supply Business of the Distribution Licensee, the Aggregate
Revenue Requirement of the Distribution Licensee shall be
apportioned between the Distribution Wires Business and Retail
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Supply Business.
Allocation – Supply & Wire

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 Net Tariff Recovery

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Approval for ARR
• As against the total
Revenue Gap of Rs.

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60,313 Crore estimated by
MSEDCL , MERC has

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determined surplus
revenue of Rs. 22,242
Crores after including the
revenue from FAC.

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Rationalization of Tariff Structure
• As a progressive step towards simpler and
rationalized tariff structure, MERC has

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adopted an approach of reducing the number
of categories and slabs by merging similarly

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placed consumer categories while ensuring
the existing consumers in these categories
are not significantly impacted.

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Merging or elimination of existing
consumer categories

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 MSEDCL
• No. of consumers (~2.73 Cr)
• Sales (~1,12,000 MU)
• MSEDCL AREA –
• Revenue (~Rs 81,500 Cr) 3.08 LAKH SQKM

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• Industrial Category comprises 1%
• Villages -41928
of the consumer mix, contributes
37% of the sales, and 43% of the • Towns – 457

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revenue.
• Commercial category comprises
7% of consumer mix, contributes 8%
of the sales, & 13% of the Revenue
• MSEDCL LINES in
• Residential category comprises KM
75% of the consumer mix,
contributes 20% of the sales, and • LT - 667273
21% of the revenue.
• Agriculture category comprises • 11 KV – 294652
16% of the consumer mix,
contributes 25% of the sales, and • 22 KV – 33676
14% of the revenue. 11
• 33 KV - 43891
 kVAh Billing
• For Industrial consumers from 1st
April 2020
MERC introduced kVAh billing ,by

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moving from the system of Power
Factor (PF) incentives/penalties to
kVAh billing.

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• There is no PF Incentive or Penalty

• kVAh = kWh/PF
• All the industries where PF is 1 (unity),
there is no change

• If PF is below Unity , then energy 12

charges will increase .
 kVAh Billing
• LT consumers above 20 kW load, MSEDCL to complete its meter
conversion process along with other system modifications & shall target to
implement the same at the time of MTR i.e. by 1 April, 2023

• For smooth transition to new billing system and to keep Consumer aware

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at all times, MSEDCL to display PF in the bill of all the Consumer
categories till further directions. Further, such PF can be used for
converting kVAh into kWh for arriving at payment to be made towards
taxes / duties imposed by the GoM, if applicable.

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• kVAh billing (Display of power factor on energy bill)
• Commissions Clarification and directives:
The Commission clarifies that as meter is programmed for
computation of kVAh (based on lag and lead consumption of
kVARh) as per formula approved by the Commission, there is no
requirement for computation of PF externally. MSEDCL may use
the power factor recorded by energy meter for displaying on
Consumer’s bill. (MERC clarificatory order dated 30.03.2020 in Case No.
79 of 2020) 13
 kVAh
• Electrical Energy has two components
1) Active Energy (kWh)

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2) Reactive Energy (kVArh)
Vector sum of these two components is called as

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Apparent Energy & is measured in terms of kVAh.

• In kVAh based billing, fixed/ demand charges are

levied on apparent power(kVA) and energy charges
are levied on apparent energy (kVAh).

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 SOLUTIONS –PF
• Improving Power Factor by installing
capacitors of appropriate ratings [or
Automatic Power Factor Corrector

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(APFC) Panels] consumer can
locally compensate reactive power
requirement, thereby reducing

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reactive power drawl from grid.
SOLUTIONS
• Consumers can also opt to install PF
meters at their LT panel to measure
the PF. It is advisable to monitor PF
of each individual circuit / machine
/plant, as may be possible, in their
internal distribution network so that
the “low PF section” can be easily 15
identified and attended.
 Rebate for Incremental
Consumption
• The rebate for incremental consumption shall be applicable for HT
industries, HT commercial, HT public services, HT-PWW, HT
Railways/Metro/Mono and HT-Group Housing Society (Residential).

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• The rebate shall be given to eligible consumers including partial
open access consumers falling under above consumer categories to

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the extent of procurement from MSEDCL.
• The rebate shall be for a period of 3 years subject to reconsideration
during the MTR.
• The rebate shall be allowed to eligible consumers who consume
power above threshold limit.
• The 3-year average monthly consumption by consumer from FY
2017-18 to FY 2019-20 shall be considered as baseline consumption
(or monthly threshold consumption) for determination of
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incremental consumption by such eligible consumers.
 Rebate for Incremental
Consumption
• If a consumer’s 3-year average annual consumption in was
12,000 units, the consumer shall be entitled for the rebate of
Rs.0.75/kVAh for consumption exceeding its monthly

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threshold consumption (not below the baseline consumption
of 1,000 units per month) in FY 2021-22 onwards. However, in

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case its cumulative monthly consumption for the yearly period
falls short of annual threshold consumption of 12,000 units
then, consumer shall not be entitled for incremental
consumption rebate for that financial year and shortfall (or
rebate already availed by consumer in earlier months, if any)
shall be adjusted for recovery in monthly billing period for
March
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 Rebate for Bulk Consumption
• The Commission has decided to introduce “Bulk Consumption” rebate
in a reverse telescopic manner for HT Industrial consumers in following
manner:

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a) For monthly consumption (> 1 Lakh units to 1 MU) p. m.: 2%
b) For monthly consumption (> 1 MU to 5 MU) p.m.: 1.5%

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c) For monthly consumption (> 5 MU) p.m.: 1%
d) Bulk Consumption Rebate shall be applicable on the Energy
Charge component including FAC of the Bill excluding taxes and duty.

• Illustration:
Say a consumer consumes 15 MU during month then, its consumption
more than 1 Lakh units upto 1 MU units rebate will be 2%/unit, for next
4 MU (i.e. upto consumption of 5 MU) rebate will be 1.5%/unit and for 18
consumption in excess of 5 MU upto 15 MU, rebate will be 1%/unit.
 FAC

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 Tariff – FY 2020-21

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 Tariff FY 2020-21

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 Tariff – FY 2020-21

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 Tariff - LT

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 Tariff - HT

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 Billing Demand- HT
• Monthly Billing Demand will be the higher of the following:
a. Actual Maximum Demand recorded in the month

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during 0600 hours to 2200 hours;
b. 75% of the highest Billing Demand recorded during

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the preceding eleven months, subject to the limit of
Contract Demand;
c. 55% of the Contract Demand.*

• *For FY 2020-21: 55%, FY 2021-22: 60%,

FY 2022-23: 65%, FY 2023-24: 70%,
FY 2024-25: 75% 25
 Discount in Demand Charges for Single Shift
operation of HT-Industry
• In case of industrial consumer under HT-Industry with single shift
operation, Demand Charges at the rate of 60% of Applicable
Demand Charges as per Tariff Schedule shall be levied, subject to
following conditions:

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• a. Single shift operation means running of operations at a stretch for
maximum 10 Hrs.
For illustration, a consumer running 4hrs.in one stretch and 6hrs.in

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another stretch cannot be considered as running in a single shift.
However, a maximum of three instances of running beyond 10hrs
up to 12hrs is permitted in a billing cycle.

• b. Consumer must declare in advance about one shift operation. In

absence of such declaration, it shall be billed as per the applicable
demand charges.

• c. Billing will be done based on MRI/AMR Data. 26

 Load Factor Incentive
• Consumers having Load Factor above 75% and
up to 85% will be entitled to an incentive in the

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form of a rebate of 0.75% on the Energy
Charges for every percentage point increase in

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Load Factor from 75% to 85%. Consumers
having a Load Factor above 85 % will be
entitled to a rebate of 1% on the Energy
Charges for every percentage point increase in
Load Factor from 85%. The total rebate will be
subject to a ceiling of 15% of the Energy
Charges applicable to the consumer. 27
 LF Incentive

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 Additional Demand Charges for Consumers
having C P P
• Consumers having a Captive Power Plant can opt for Standby Demand and
Additional Demand Charges for such Standby Demand will be as follows:

a. 25% of the Applicable Demand Charges for months when standby capacity is not

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utilized
b. Demand Charges at the rate of 100% of Applicable Demand Charges for months

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when standby capacity is used under planned or un-planned shutdown of CPP
c. In case recorded Demand exceeds Contract Demand + Standby Capacity, then
applicable Demand Charge for the Demand actually recorded, and an additional
amount at the rate of 150% of the applicable Demand Charge (only for the
Demand in excess of the Contract Demand + Standby Capacity)
d. In case no Standby capacity has been opted by consumer having CPP, then
additional amount for exceeding Contract Demand be charged at 200% of
applicable Demand Change (only for demand excess of Contracted Demand)

( Danger – This may be applicable for Solar plant installed behind the meter once 29
the record is available)
 CONNECT
• For any query/clarification
, Please whatsapp on
following mobile

7/1/2020
• +91 9823082605

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• +91 9689923702
• +91 9975596730

• Mail to

a2zadcon2016@gmail.com
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 SOLUTION -OPEN ACCESS
Conventional Power Options under
supply mode Open Access

Captive/Group
Captive

Through DISCOM/
Grid supply with
fixed Contract Complete
Demand transaction routed
through same Through Power
infrastructure under Exchanges
“Open Access”
Scheduling

Shortfall is met by running

high cost Diesel Gensets Bilateral Scheduling
during sudden power cuts Firm/RE thru 31
Capacity & Tenure
Promotion of Renewable Energy:
• MSEDCL proposed levy of Grid Support Charges on
Generation from Roof top Solar Net metering projects ( More
than Rs 4/kWh)

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• MERC mentioned that Grid support charges are necessary to
avoid additional tariff burden on the non solar consumers.
• To promote Solar Rooftop, MERC has decided not to levy any

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Grid Support Charge to the solar roof top installations till the
cumulative Rooftop PV capacity in Maharashtra reaches 2000
MW. As on January 2020 , Installation of RTPV in
Maharashtra 460 MW (245 MW at HT & 215 MW at LT )
• For the excess generated energy flowing into grid, MERC
approves banking charge in kind - 7.5% for HT and 12% for
LT of the energy banked in the grid.
• Additional fixed charges on behind the meter Rooftop PV is
exempted but all such projects need to be registered. 32
 OPEN ACCESS Charges

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 Cross Subsidy Surcharge

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Additional Surcharge & Wheeling
Charges

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Transmission Charges & Losses

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 Promotion of EV
• To promote Electric Vehicles (EV) in the State,
MERC has approved concessional, lower than ACoS

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tariffs for EV Charging Stations at HT and LT
Voltage levels, with effective variable charge of Rs.
5.50 per unit and demand charges of Rs.70 per kVA

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per month. Additionally, they are also eligible for
Load Factor (LF) and Power Factor (PF)
incentives/penalties as applicable, besides Time-of-
Day (ToD) tariffs, which will further reduce their
tariff.

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EV Charging Station-Tariff

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 Special Interim Dispensation-
COVID-19
To mitigate to some extent the difficulties being faced by the

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Electricity consumers of Maharashtra and all out efforts to
contain the spread of Corona Pandemic;
• a) Commission issued a practice direction on 26/3/2020

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whereby meter reading and physical bill distribution
work was suspended and utilities were asked to issue bills
on average usage basis till the current crisis gets
subsided.
• b) To put a moratorium on payment of fixed charges of
the electricity bill by consumers under Industrial and
Commercial category for next three billing cycles 39
beginning from the lockdown date of 25/3/2020.
 LOCKDOWN BILLING
• There are certain billing issues
reported by Consumers – Very

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high bills during Lock down
period.
• MSEDCL informed that the bills

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are getting corrected .

• For Domestic consumers – Self

verification possible
• https://billcal.mahadiscom.in
/consumerbill/
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Draft Amendment in the Electricity Act, 2003 to
Introduce some key Reforms in the Power Sector
• DRAFT ISSUED ON – 17th April 2020
• Sections proposed amendment – 26,38,39,42,61,62,77,78,82,84,86,92,119

• Major amendments proposed in the Electricity Act are as follows.

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• Viability of Electricity Distribution companies (Discoms)

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• (i) Cost reflective Tariff: To eliminate the tendency of
some Commissions to provide for regulatory assets, it is
being provided that the Commissions shall determine
tariffs that are reflective of cost so as to enable Discoms
to recover their costs.

• (ii) Direct Benefit Transfer: It is proposed that tariff be

determined by Commissions without taking into account
the subsidy, which will be given directly by the
government to the consumers. 41
Draft Amendments – EA 2003
• Renewable and Hydro
Energy
• National Renewable Energy
Policy: It is proposed to provide for

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a policy document for the
development and promotion of
generation of electricity from
renewable sources of energy.

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• It is also proposed that a minimum
percentage of purchase of
electricity from hydro sources of
energy is to be specified by the
Commissions.

• Penalties: It is being further

proposed to levy penalties for non-
fulfilment of obligation to buy
electricity from renewable and/or
hydro sources of energy. 42
Very High Bill
G.CAPTIVE

CAPTIVE OA

Decision?????
 THANK YOU

7/1/2020
Prashant Khankhoje
• Prashant Khankhoje ( cell - +91 98 230 82 605)
Mentor , Energy Advisor
• www.a2zenergies.com
• Exploring All Energies in Universe 44
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