MERC directs power firm to refund LBT dues

AURANGABAD: The Maharashtra Electricity Regulatory Commission (MERC) has directed the state power utility to refund the Local Body Tax (LBT) recovered from user in upto three equal instalments.
The power sector regulator also held that charging LBT from consumers in the limits of Aurangabad civic body amounts to recovery of a charge higher than the tariff approved.
The verdict is also applicable to consumers residing within the limits of Amaravati Municipal Corporation as the concerned local civic body was also party to the petition against the Maharashtra State Electricity Distribution Company Limited (MSEDCL).
When contacted, Suresh Ganeshkar, chief engineer with MSEDCL, Aurangabad circle said, “Mumbai-based head-quarters of the state power utility has been apprised about the latest MERC verdict.”
“The further course of action in compliance with MERC order would be decided shortly. As asked by the regulator, money would be refunded in three instalments. The amount to be refunded varies from consumer-to-consumer as per the consumption units,” he said on Tuesday.
GTL, an erstwhile power franchise for the city, had started to recover LBT from the consumers through monthly energy bills from September, 2014. The firm, after taking over the franchisee area of Aurangabad, recovered LBT till June 2015.
Even if MSEDCL stopped the recovery of LBT as per official developments, it did not refund the money worth Rs 8.19 crore that was collected from Aurangabad municipal area, forcing a legal battle before MERC.
Hemant Kapadiya, consumer representative on Maharashtra Energy Regulatory Commission (MERC), said, “The MSEDCL should refund money in question with immediate effect. He also said that MERC order should be interpreted in the best interest of the consumers.”
While asking for refund of charges towards LBT, the MERC has also observed that the MSEDCL does not require the permission to pay statutory taxes or levies, such as LBT and the matter of adjustment of the LBT dues against electricity bill arrears may be mutually resolved by MSEDCL and AMC. “The verdict should be read and interpreted in the interest of consumers,” Kapadiya said.