In a major decision, Maharashtra Electricity Regulatory Commission (MERC) has granted a 25-year distribution licence to Tata Power for supplying power in city and suburban areas. The state regulator in its order has allowed Tata Power Company (TPC) to supply electricity in Mumbai city, parts of suburban areas including Bandra to Dahisar in Western suburbs; Chunabhatti to Vikhroli and Mankhurd in Eastern suburbs.
It has also been granted licence to supply electricity in areas of Mira-Bhayander Municipal Corporation, Chene and Versova which were earlier not a part of its licence area.
"Based on all materials placed, and suggestions and objections received, the Commission is of the view that it is in the public interest to grant licence to TPC to distribute electricity in the proposed area of supply," MERC said in the order.
The commission had invited tenders from interested parties for granting licence to supply electricity in the proposed areas as TPC's licence was expiring on Friday. The new licence will come into effect from Saturday, the order said.
"The Commission grants distribution licence to TPC to supply electricity in the proposed area for 25 years from August 16," the order said.
MERC has also asked Tata Power to submit a fresh rollout plan, for supplying electricity, within six weeks. Currently, BEST is supplying electricity in the city along with Tata.
"With this order, consumers of BEST can shift to Tata Power's network," an industry expert said.
Tata Power has a consumer base of five lakh in Mumbai of which nearly 65 percent are those consuming below 300 units per month.
Reacting to the MERC order, the private utility said it continues to aggressively expand network in Mumbai and serve all categories of consumers.
"We would continue to balance stakeholders' interest in Mumbai by welcoming small and residential customers as also all commercial and industrial consumers."
"Similarly, we will support BEST's case for transport subsidy to be rationalised across each electricity unit collected so that it's not just left to BEST (transport and electricity arm of local civic body) to collect the same," Tata Power said in a statement.
The company will also make sure that the BEST margin of business is not affected adversely as it has been a long term participant in power supply system in Mumbai, it said.
"Tata Power strongly believes in the vision of MERC and Government to get consumers a competitive cost option with reliable supply. We would continue to facilitate the same with positive and close association with all stakeholders."
Tata Power continues to aggressively expand its network in Mumbai to offer switchover so that consumers can have reduced tariffs, the statement added.3