BEST has filed a petition before the Maharashtra Electricity Regulatory Commission (MERC) apprehending cherry-picking of its customers by the Tata Power Company (TPC) and has demanded a mechanism to "allow migration of only low-end residential consumers" in the island city.
It also plans to go in appeal in the Appellate Tribunal for Electricity (APTEL) and challenge the grant of licence to TPC, said sources.
BEST now stands to lose its monopoly in the island city as MERC has granting a distribution licence to TPC for 25 years. Sources said there could be large-scale migration of power consumers between Colaba-Cuffe Parade and Mahim-Sion areas for the benefit of cheaper rates.
In its petition, BEST sought a mechanism for "compensating revenue losses" arising out of mass migration of consumers and avoiding a tariff shock.
TPC officials denied there would be cherry-picking, saying they planned to serve over 14 lakh consumers by 2018-19.