On September 13, 2024, the Maharashtra Electricity Regulatory Commission (MHERC)notified regarding the Maharashtra Electricity Regulatory Commission (Transaction of Business and Fees and Charges) (First Amendment) Regulations, 2024. This amendment further refines the framework established in the Maharashtra Electricity Regulatory Commission (Transaction of Business and Fees and Charges) Regulations, 2022.
New Update:
The primary focus of the recent amendment is the adjustment of the Annual Licence Fee, specifically outlined in Regulation 2.1, Sr. No. 3 (ii) of the Schedule of Fees and Charges.
Distribution Licence Fee: The fee has been revised to 0.1 percent of the revenues generated from the wheeling and sale of electricity. It’s important to note that this calculation excludes any taxes and duties. Additionally, the fee will be rounded off to the nearest one hundred rupees, with a minimum charge set at Rs. 5,00,000/-.
This amendment signifies a shift in how electricity distribution companies will be charged for their licenses, aiming to ensure a more equitable and transparent fee structure.
Implications for Stakeholders
The changes introduced by the MHERC are crucial for various stakeholders in the electricity sector, including:
- Electricity Distribution Companies (DISCOMs): The revised fee structure may impact their operational costs, and it’s essential for them to plan their budgets accordingly.
- Consumers: While the changes primarily affect license fees, any potential increases in operational costs for DISCOMs may eventually be reflected in consumer tariffs.
- Regulatory Bodies: This amendment reinforces the regulatory framework, promoting transparency and accountability within the electricity sector.
Effective Date:
The new regulations will come into force immediately, but the amended fee structure will be applicable starting from the financial year 2025-26.
