MP Proposes High Cross Subsidy Surcharge

After Maharashtra, it was the turn of MP to propose a high cross-subsidy surcharge. According to an approach paper released on the topic by MPERC, industrial consumers will have to pay upto Rs 1.53 per unit as cross-subsidy. This will make open access a non-starter in the state.

It is particularly disappointing as the RPO/ REC mechanism provides a strong incentive to companies to procure ‘Green Power’ – something that will directly encourage investment in renewables – the primary objective of the scheme to begin with, and something that states like MP can benefit from. But with a high cross subsidy as proposed, it will fail to take off.

Comments can be sent to MPERC by the 17th of this month.

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