Your power bills will shoot up from May

MUMBAI: Residential electricity consumers across the state, as well as medium and large sugarcane farmers, face increased power billing by at least 25 paise a unit from May onwards with the MERC deciding to continue with the policy of gradually eliminating the cross-subsidy system.

The move is in keeping with the national policy to gradually eliminate the cross-subsidy, which involves using revenue from industrial and commercial users to reduce the burden on suburban and agricultural users. Last year, on these grounds, MERC had approved a hike for residential consumers in the rest of the state, but not in Mumbai. This summer, MERC is planning to continue its implementation of the central policy, which will lead to residential rates across the state, including Mumbai, going up.

“We are serious about implementing a gradual reduction in the cross-subsidy by effecting a minimal increase in the tariff for residential and some agricultural consumers this summer. The action plan for the execution of this idea is being prepared,’’ said an official.