Monday, 21 January 2019

Power Factor Incentive/Penalty: Revision in Maharashtra Electricity Tariff

The Maharashtra Electricity Regulatory Commission, in exercise of its power under Sections 61 and 62 of the Electricity Act (EA), 2003, and in pursuance  of the MYT Regulations and all other  powers enabling it in the behalf,  and  after  taking into consideration  MSEDCL’s  submission, the  written  and  oral suggestions  and objections received and the  responses  of MSEDCL, and all other  relevant  material,  has issued Mid-Term Review Order dated 12 September, 2018 in Case No. 195 of 2017.

Accordingly, the guidelines as under are issued for replacement  of the said order of the commission without prejudice to the rights of MSEDCL to take any actions as provides in the law.

Power Factor Incentive/Penalty:

In view of MERC Tariff order 195 of 2017 dt. 12.09.2018, Penalty for leading Power Factor is introduced, whereas incentive is applicable in case of lag PF only.

Penalty for leading power factor also introduced. This penalty will be applicable from prospective effect. As a first step  towards  the  kVAh billing system, which is devoid of any separate  incentive / penalty for power factor,  the  Commission has  decided  to  reduce  the  existing PF Incentive/ Penalty  by 50%. Accordingly, maximum PF Incentive, which is 7% at the Unity Power Factor, has been reduced to 3.5%. Similarly, Penalty for the lower power factor has been penalized.

Whenever the avg P.F. is more than 0.95 Lag and upto 1, an incentive shall be given at the rate of percentage in Tariff order at the amount  of monthly electricity bill, excluding taxes and duties. And whenever average P.F. is less  than  0.9 (Lead or Lag), Penal Charges shall be levied at the  rate  of percentage  of amount  of monthly electricity bill, excluding taxes and duties.

There is change in % of PF Penalty and Incentive as below. 

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