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Home News Power Sector News Realiance and BEST approach MERC for 30% tariff hike in Mumbai

Realiance and BEST approach MERC for 30% tariff hike in Mumbai

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 Realiance Infrastructure and BEST approach MERC for 30% tariff hike in MumbaiReliance Infrastructure (RInfra), formerly known as Reliance Energy Limited, and the Brihanmumbai Electric Supply and Transport (BEST) undertaking had approached the Maharashtra Electricity Regulatory Commission (MERC) seeking a tariff hike to make up for the expensive power they have to purchase from outside sources to meet the ever-growing demand in the Mumbai city. MERC is soon expected to clear the hike and the date from when it will become effective.

The city has been facing a daily shortage of 600-700 megawatts (MW). According to utilities, to ensure that the city receives continuous supply, they have to procure power at as much as Rs 10-12 per unit from sources outside Mumbai. However, the Tata Power Company (TPC), which is the bulk supplier in Mumbai, sells power at Rs 4.50 per unit.

The worst hit would be the suburban consumers of Reliance Infrastructure, which needs to procure almost one-third of its requirement from outside. RInfra’s total demand is around 1,500 MW, of which 500 MW is procured from its generation plant at Dahanu and another 500MW from TPC. The rest is bought from outside sources.

BEST, which has a power-purchase agreement with TPC, gets 800MW from Tatas and has to procure only around 100MW from outside.
This means on an average RInfra’s consumers might have to pay an additional Rs 1.5 per unit whereas BEST consumers from the island city will have to shell out 50 to 65 paise more per unit. This hike, of course, will be spread across different slabs of consumption—which means the higher is the consumption, the steeper will be the additional charge. 

If cleared, this will be the second tariff hike this financial year, the first being in effected in June when MERC fixed the tariffs for all the three utilities - REL (RInfra now), BEST and TPC.

Existing Power tariff in the city is among the highest in India comparing with many of the public sector utilities in other states.

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