The board claims that the hike for the high-tension consumer is marginal, while it has created new category for industrial consumers to benefit the industries.

It maintains that the tariff is still lower level than the actual requirement of revenue. While the total shortfall in revenue required for this year is of Rs 1,109 crore, this revised tariff would provide the board only Rs 404 crore during the current fiscal.

In a proposal submitted to the MSERC it said that the proposed tariff should remain in force for one year. "Since the new tariff would be applicable for only four months of this fiscal the increase in the overall revenue for this financial year would be of Rs 404 crore," the board stated.

"Delay in implementation of the proposed tariff may cause reduction at rate of Rs 100 crore per month in additional revenue."

Revised tariff for the highly subsidised categories would result in lowering subsidy to around Rs 500 crore to Rs 5387.54 crore than Rs 589268 crore earlier. According to the board, there is only a marginal increase in the tariff charged from the high-tension industrial consumers which is the main source of cross-subsidy.

"The existing average rate of billing is itself far more than the average cost of supply. However, the board could not leave this category exempt while revising tariff," stated MSEB.

The board has also introduced a new category of tariff for industrial consumers having more than 5mw connected load and who are therefore given power supply at extra-high voltage. Proposed tariff for this category is lower than the one applicable to average industrial consumers.

MSEB expects to generate around Rs 12,640 crore during the current fiscal. This include the revenue from sale of electricity at Rs 12,341 crore and other sources Rs 299 crore. Other income include delayed payment, power factor penalty, interest minimum charges.

The revenue expenditure for the year is estimated at Rs 13,324 crore. But the board has also to generate statutory surplus of Rs 435 crore during this period. Thus, the total requirement goes up to Rs 13,759 crore, said the board.

On the cost of supply, the board said that the overall average cost of supply for the year 199-2000 is estimated at around Rs 2.55 per unit compared to estimated Rs 2.26 per unit last year.

The average cost of supply to high tension and low tension for the year is estimated at Rs 2.12 and Rs 3 for per unit respectively as compared to Rs 1.89 and Rs 2.66 per unit respectively estimated for the last year. The board believes that the proposed tariff is still lower than actual requirement of revenue. Commenting on the previous revision of tariff in September '98, the board said that the tariff should have been revised with effect from April 1998.