Mumbai: Maharashtra Electricity Regulatory Commission (MERC), the state power regulator, has decided to investigate a complaint that power distribution utility Mahavitaran Ltd has ovebilled users to the tune of around `53,500 crore over the past 13 years.
The complaint lodged on 8 July by consumer activist Pratap Hogade alleged that state-owned Mahavitaran Ltd overbilled consumers to the tune of `30,000 crore, and the amount would add up to around `53,500 crore if one adds interest at the rate of 12% per anum.
"Prima facie, it seems there is some credence to his claim," MERC chairman V.P. Raja said in an interview on Friday. "We have decided to carry out data analysis of 5% of feeders (a cable from the distribution station to the transformer), randomly selected to ascertain validity of claim made by Hogade."
Mahavitaran overcharged consumers to hide its actual distribution losses, the gap between the quantum of electricity pumped into the distribution system and quantum of electricity which gets billed, alleged Hogade.
Raja said he will have to determine whether the issue of overbilling has arisen because of inadequacies in Mahavitaran's infrastructure or due to a "deliberate attempt by Mahavitaran's management to hide the real figure of distribution losses".
"We have also asked Mahavitaran to submit its say on the allegations made by Hogade at the earliest," said Raja.
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