The increase would be mainly on account of "costly power purchase from Dabhol Power Company and high transmission and distribution (T&D) losses which are likely to increase to 39 per cent from 31.82 per cent."

MSEB has intentionally proposed the increase in agricultural tariff on grounds that 16 per cent of farmers, who have irrigation facilities, have been enjoying the bulk of subsidy for the past 40 years and their arrears still run over Rs 1,300 crore.

"The revised tariff is so formulated that metered supply will be preferable to unmetered one. Cost of supply to a low tension (LT) pump is estimated to be over 5 per cent and the proposed agricultural tariff would be about 55 per cent to 65 per cent of the cost to serve agricultural consumers," MSEB said in the 1,200-page tariff hike proposal which it submitted on Friday to the Maharashtra Electricity Regulatory Commission (MERC).

In the high tension (HT) category, HTP -I, II, III, IV and VI are proposed to be merged into a single category and thereby all HT industrial consumers are proposed to be charged at Rs 325 per kVA per month demand charge and at Rs 3.30 per unit energy charge.

MSEB has proposed to cover an "unprecedented" revenue gap of Rs 4,250 crore partly by its own efforts (Rs 500 crore) and the balance by "substantial" incrase in tariffs for all categories.

"The steep hike in tariff will doubtless be a rude shock to all consumers. However, circumstances necessitate such revision and I appeal to the Commission to convey this awareness to them through its order, in the state's enlightened self interest," MSEB chairman Vinay Bansal said in an introductory letter to the MERC chairman P Subrahmaniam.

MSEB, in a bid to rationalise and simplify the tariff structure, categories, sub-categories and slabs, has proposed to reduce it to a mere 17 from the present level of 40. To reflect the increase in the MSEB's fixed obligations and in line with the MERC's desire as stated in its May 5, 2000 tariff order, the fixed component of revenue is proposed to be increased from 33 per cent to 43 per cent.

The rates within the low tension category and within the high tension (HT) category have been made uniform to a large extent. The fixed charge portion of tariffs is proposed to be increased for all categories.

Tn domestic (LD1) category, the number of slabs would be reduced from 4 to 2 (0-30 units and greater than 30 units). The fixed charge is proposed to be increased to Rs 75 per month. However, there would be no rise in the energy charge in the first slab. Thus, the monthly bill of the very small farmers (less than 30 units consumption) would be less than Rs 100. The energy charge for the consumption of more than 30 units slab is proposed at Rs 3.75 per unit.

All slabs in the non-domestic (LD2) category are proposed to be removed and the energy charge for all consumers is proposed to be kept at the same level as for the domestic consumers (Rs 3.75 per unit). The fixed charge is proposed to be increased to Rs 200 per month.

All slabs in LTP-G category are proposed to be merged into one slab. The demand charge is proposed to be increased to Rs 100 per kW per month and the energy charge is proposed at Rs 2.85 per unit. The metered powerloom category has already been merged into LTP-G and the tariff for unmetered powerloom consumers is proposed to be increased to Rs 850 per kW per month.