In an application submitted to the Maharashtra Electricity Regulatory Commission (MERC) for approval, the MSEB said any further delay in implementation of the proposed tariff may cause revenue loss to the tune of Rs 100 crore per month for the State Electricity Board. It has estimated a revenue-expenditure shortfall of Rs 1,109 crore, hence the tariff hike, it said. ``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 said.

The MSEB is buying power at a highly inflated rate from multinational EnronCorporation which has bombarded the beleaguered SEB with hefty bills since August this year. As the SEB -- which is already reeling under Rs 3,000 crore of unpaid bills -- does not have any other avenue for raising the funds, it has decided to increase the power tariff which was feared by industry associations since the work on the Dabhol project began.

The MSEB has stated in the application to MERC that the revision in tariff should come into force with retrospective effect from November 1, 1999 for one year. Objections, if any, can be filed with the Secretary, Maharastra Electricity Regulatory Commission in Nariman Point before December 23, this year. MERC will take a decision on MSEB's application after hearing all the objections from the public and other parties.

It may be recalled that former deputy chief minister and energy minister Gopinath Munde had stated that the power tariff would not be hiked due to a power purchase agreement signed with the DPC. On Monday, Maharashtra Chief Minister, VilasraoDeshmukh had said the new government will ``look into'' certain parts of ``re-negotiations'' done by the previous government.

The MSEB admitted that the overall cost of supply for the year 1999-2000 has gone up to Rs 2.55 per unit as compared to 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 for the last year. ``Revised tariff for the highly subsidised categories would result in lowering subsidy to around Rs 500 crore to Rs 5,387.54 crore than Rs 5,892.68 crore earlier,'' MSEB said.

The board has also removed the option of unmetered supply given to the "C" class municipal councils under the rural public water supply scheme by making the metered supply of electricity compulsory for these municipalities with effect from December 1, 1999.

The agriculture sector will also not be able to avail of this facility from April 1 next year. As over84 per cent of the sector is billed as per un metered tariff, installation of meters is expected to take some time. Hence the delay in implementation of the revised tariff in the sector.

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 five mw 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.