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Home News Power Sector News Mumbai - Private Discoms want 50-1,000% hike in one-time charges

Mumbai - Private Discoms want 50-1,000% hike in one-time charges

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MumbaiIf power suppliers have their way, consumers in Mumbai will have to shell out 50 to 1,000 per cent more as one-time charge to shift their electricity meter, increase its supply load or opt for a new power connection. On 19-10-2012, all power suppliers in Mumbai-the Brihanmumbai Electricity Supply & Transport Undertaking (BEST), the Reliance Infrastructure (RInfra) and Tata Power Company (TPC)-submitted to Maharashtra Electricity Regulatory Commission (MERC) their proposals seeking to increase the one-time charge for different works such as new connection, reduction or addition of power load on an existing connection, shifting of service, restoration of supply and temporary connection.

The proposals were published in newspapers on Friday. MERC will now invite suggestions and objections. The final decision will be taken by MERC after holding a public hearing.

The BEST has proposed to hike its meter shifting and reconnection charges to Rs 200-1,500 from Rs 50-1,000 in case of residential users. The percentage of proposed hike ranges from 50% to 1,200% for consumers in different categories of supply.

Similarly, Rinfra has proposed to hike its charges by a minimum of 33% to a maximum of 214% depending on the load supply. For some categories of consumers, the hike has been proposed by over 600%. The TPC has also proposed to hike its charges by a minimum of 47% to over 500% in different supply categories. so as to hold a public hearing on the proposals.

While the BEST supplies power to over 9.6 lakh consumers in the island city, RInfra caters to over 27 lakh suburban consumers. Tata power has over 3 lakh consumers, mostly in the suburbs. Mumbai. With the TPC's entry in suburban and the island cities as power supplier, it has come up as a competition for both - BEST and the RInfra which are established as suppliers for decades now.

According to sources, most of these companies have not hiked these charges for the last one decade.

State power supplier MSEDCL had proposed to hike its one-time charge by over 50% but MERC apparently granted a hike of about only 5%.

Meanwhile, the BEST's proposal to hike one-time charges came under sharp criticism at the BEST's committee meeting held on Friday. Ravi Raja, the committee member said the committee was kept in dark while mooting such a proposal which will eventually burden the consumers who already facing inflation and hike in electricity and fare charges. Meanwhile, BEST GM Omprakash Gupta said such a hike is coming after 10 years now and the final decision will be taken by MERC.

Source- TOI


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