MPERC clarifies that on merger of HT connections under HV-3, rebate must be computed by deducting the base-year month's consumption of the existing (clause-d) connection from the merged connection's total consumption, in both merger scenarios.
Petition under the Para 1.33 and Para 1.36 of General Terms and Conditions of High-Tension Tariff specified in the Retail Supply Tariff Order for FY 2025-26, seeking necessary clarifications/directions and removal of difficulties towards applicability of rebates for cases where the consumer opts to merge separate connections. (Petitioner: 1) Managing Director, MP Power Management Company Limited 2) MP Poorv Kshetra Vidyut Vitran Company Limited 3) MP Madhya)
MPERC's FY2025-26 Retail Supply Tariff Order gives two mutually exclusive HV-3 rebates: clause (d) ₹1/unit on incremental consumption over the corresponding FY2015-16 base month for existing HT connections, and clause (e) ₹1/unit (or 20%, whichever is less) on entire consumption for new HT connections up to FY2025-26. Supply Code 2021 clause 7.33 permits consumers on contiguous land, under common ownership/license, to merge separate connections. DISCOMs received merger requests combining an existing (clause-d) connection with a new (clause-e) connection, or vice versa, but the Tariff Order was silent on which rebate methodology applies post-merger, causing ambiguity and stalling pending consumer representations. DISCOMs sought Commission clarification under paras 1.33/1.36 of General Terms and Conditions to remove this difficulty while safeguarding both revenue and consumer interests.
- Petition disposed of; Commission exercised powers under clause 1.33 of the FY2025-26 Tariff Order to remove the difficulty in rebate applicability on merged HT connections under HV-3.
- Case 1 (existing clause-d connection merged with new clause-e connection): base month's (FY2015-16) consumption of the clause-d connection to be deducted from total merged consumption; rebate applies on the resulting incremental amount.
- Case 2 (new clause-e connection merged with existing clause-d connection): same treatment applies - base month's consumption of the clause-d connection deducted from total merged consumption.
- Effectively, in both merger scenarios the merged connection is treated under the clause-(d) incremental-consumption methodology, not the clause-(e) full-consumption methodology.
- Commission noted it ensured DISCOM revenue is not adversely affected while safeguarding consumer interest.
- No change made to the underlying ₹1/unit (or 20%, whichever less) rebate rates themselves - only the consumption base for computation was clarified.
- DISCOMs to apply the clarified formula (deduct clause-d base month consumption from merged total consumption) to all pending consumer representations for HT connection mergers.
- Consumers seeking to merge connections must continue to satisfy clause 7.33 conditions (contiguous land, same ownership/license, single point of supply, no outstanding dues, combined demand within voltage limit).
- DISCOMs to finalize fresh supply agreements for merged connections per Supply Code 2021 requirements before applying revised rebate computation.
- No further tariff amendment needed - clarification operates as an interpretive direction under clause 1.33, applicable immediately to pending and future merger cases.
- Consumers availing merged-connection rebate under the clarified clause-(d)-style method remain barred from simultaneously claiming clause (e) full-consumption rebate.
- DISCOMs should communicate the methodology to affected HV-3 consumers to enable resolution of pending representations.
- • C&I/industrial consumers merging an existing HT connection with a newer one will generally lose the more generous 'full consumption' rebate (clause e) and instead get the narrower incremental-consumption rebate (clause d), reducing rebate quantum in many cases.
- • Developers planning brownfield expansion via a new HT connection alongside an existing one should model the post-merger incremental-rebate impact before opting to merge, as it may not be revenue-neutral.
- • Clarity removes DISCOM-level ambiguity, so pending merger applications for industrial consumers can now be processed without further delay.
- • Since rebate rates (₹1/unit, 20% cap) are unchanged, the overall tariff economics for HV-3 category remain stable; only the computation base for merged accounts shifts, relevant mainly for consumers actively considering connection consolidation.
This is a narrow but important commercial clarification for MP's large industrial consumers with multiple HT connections. The net effect favors DISCOM revenue protection over consumer flexibility - merging a new 'full-consumption' rebate connection with an older 'incremental' one collapses the benefit to the stricter incremental method in both directions. C&I developers in MP planning phased capacity additions via separate new connections should avoid premature merger requests until they've quantified the rebate erosion, and should instead evaluate maintaining separate connections if compliant with Supply Code 7.33, unless operational reasons compel consolidation.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.