In addition to a recent 37% increase in electricity distribution slab rates, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has increased the Fuel Adjustment Charge (FAC). This dual effect highlights the need for customer knowledge in the midst of these price modifications and raises questions about the financial strain on local power users.In order to mitigate the costs of obtaining pricey power during the busy summer months, Maharashtra State Electricity Distribution Company Limited (MSEDCL) has instituted an increased Fuel Adjustment Charge (FAC).

This will guarantee a constant supply of electricity. The Maharashtra Energy Regulatory Commission (MERC) has approved an increase in FAC, which would show up in January bills for power use starting in December 2023.

Energy analysts predict a spike of between 25 and 65 paise per unit, meaning that residential customers' bills will rise by at least Rs 300. In 2020, MERC has made it mandatory for consumer invoices to include FAC. From November to December, the FAC prices stay the same, ranging from 0.10 to 0.65 paise per unit depending on the usage category.

Notably, the new fees will mostly affect the residential and industrial sectors, with the latter incurring an extra cost of thirty to forty paisa per unit. Even with the recent growth in sales of electric vehicles, truckers continue to face fuel scarcity, which makes the FAC increase problematic. 

Industry insiders are concerned about the potential twin impact on customers of a major power price hike with extra fees for expensive power procurement.