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Reliance Infrastructure (RInfra) said the Maharashtra Electricity Regulatory Commission has allowed it to recover arrears of Rs 5,500 crore, with a 14.5 per cent carrying cost, at Rs 925 crore a year, over six years.
The Commission has also allowed RInfra to recover a revised cross subsidy surcharge (CSS) of Rs 819 crore for 2013-14, Rs 896 crore for FY15 and Rs 590 crore for FY16.
Cross-subsidy is the charge for using a network of one operator to receive electricity supply from another operator. Power consumers in Mumbai have the option to shift to the electricity distributor of their choice. The arrears are due to tariff revisions that the regulator postpones for recovery later.
RInfra said the revised tariff and arrears recovery would come into effect from September 1. RInfra said though recovery has been allowed, its tariffs are expected to reduce by 12 per cent and 11 per cent over the next two years, primarily due to low power procurement cost and higher efficiency in distribution.
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