The MERC has rejected the MSEB's petition explaining its inability to reduce the transmission and distribution (T&D) losses by five per cent during 2000-01. The MERC order said its target in this regard was ``very reasonable'' and thus it disallowed the MSEB plea to reduce the loss reduction target and use of average realisation from low-tension category for calculating revenue arising out of reduction in T&D losses.

The MERC, while issuing an order on a review petition filed by the MSEB on its tariff revision order of May 5 this year, rejected the MSEB's demand for providing additional revenues to cover the losses.

The MERC said the actual T&D loss would be higher than 31.87 per cent as revealed by the MSEB. This would be on account of the agricultural consumption being less than 1,600 hours, as it includes losses up to low- tension level and power consumption lesser than estimated at about 180 to 185 hours per loom per month, as against 227 hours per loom per month assumed by it.

On the reduction in transit loss, the MERC said the MSEB can reduce it by periodic calibration of own weighbridges and witnessing the periodic calibration of suppliers' weighing scale. It has directed the MSEB to carry out detailed study of coal procurement, supply, use and accounting through independent consultants and submit the report to it by March 31 next.

The MERC has asked the MSEB to resort to ``legal action of disconnection of the consumers neglecting to pay charges under the provisions under section 24 of the Indian Electricity Act, 1910, in case payments are delayed beyond the specified period.'' It has added that this would act as a ``sufficient deterrent, rather than resorting to higher penal interest rate of 18 per cent.''

The MERC has upheld the MSEB's argument that small powerloom owners deserves some relief in the tariff and it has extended the concesional tariff of Rs 2.10 per unit for this group of consumers for consumption up to 1,000 units per month. ``The commission would like to comment here that the lowest slab (0-300 units consumption per month) for the low-tension powerloom group category is already enjoying a substantial concessional rate of Rs 2.10 per unit.''

The MERC futher said it has combined the first two slabs of 0-300 units and 301-1000 units into a slab of 0-1000. This revised slab would be applicable to the powerloom consumers having only one connection and having up to four powerlooms. The energy charge for this combined consumption slab would be Rs 2.10 per unit, the MERC added.

The MERC has made it clear that this concession of the lowest slab tariff up to a monthly consumption of 1,000 units ``would be progressively withdrawn over three years. This concessional tariff would be applicable with effect from May 1, 2000''.

The MERC has rejected the reveiew petition of Janseva Pani Purvatha Sahakari Sanstha, Kolhapur, on the tariff imposed on lift irrigation scheme. The petitioner had submitted that the tariff hike for the lift irrigation scheme and metered supply for farmers with pumpsets above 10 HP was not justified on the grounds that the lift irrigation scheme are not profit making private companies.