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Home News Power Sector News Tata’s high-end users may pay 20% less and low end users to pay more

Tata’s high-end users may pay 20% less and low end users to pay more

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Tata PowerTata  Power Company has filed a mid-term review petition before the electricity regulator, proposing to reduce tariff for high-end consumers by up to 20% and increasing rates for low-end residential users by 7%.

For the first time, the utility firm has proposed a new category for ‘electric vehicle’ (EV) charging instead of clubbing it under adifferent category. “The rate for EV charging stations has been kept lower than the charges for industrial and commercial category. This will encourage more people to switch to environment-friendly electric cars and bikes,” said an energy department source.

Tata’s petition indicated that the special tariff will be Rs 5.16—which includes basic energy charge of just Rs 3 per unit— applicable for those wanting to drive battery operated cars /two-wheelers in Mumbai. Asingle full charge of battery can run a car for as long as 120 km and the cost could come to 60-70 paise per km, sources said.

The Maharashtra Electricity Regulatory Commission (MERC) petition indicated that the tariff for low-end residential users, specially in the 101-300 units consumption category will go up by 44 paise per unit, from the existing Rs 6.44 per unit to Rs 6.88 per unit (7% increase). This cost will include the wheeling charges and the regulatory asset charge (RAC). The RAC is a charge for past recoveries of Tata Power, which could not be recovered since the approved tariff was not sufficient to recover the costs incurred.

If one goes by the break up of the charges that all residential users will pay, the basic energy charge has not been hiked at all. In fact, the proposed energy charge component has dropped by an average 5.5%, but there is a corresponding increase of 19% in wheeling charges and another increase in the RAC, which consumers will have to pay in their bills.

The petition, which has been made public, mentioned: “Objections and comments can be sent to MERC at World Trade Centre by July 30.” Hearings will take place after getting feedback. The final tariff order is likely to come up by September-end.


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