IN the past one year, the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has refunded around Rs 1,300 crore to customers by passing on a negative Fuel Adjustment Charge (FAC). While mostly the FAC component is positive, when the fuel prices are high, in 2017-18 the discom was able to adjust negative FAC on electricity bills. A senior official from the discom said: “This does not mean that fuel prices were low. Fuel prices are variable and compared to the overall cost of purchase of power, the amount of negative FAC is a small proportion. The price of power on the exchange has started to peak because of a shortage of coal,” said an official from MSEDCL.

Source: Indian Express April 08, 2018 21:33 UTC