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MSEDCL and Tata Power tariffs go up, BEST’s drops

MSEDCL and Tata Power tariffs go up, BEST’s drops


MSEDCL and Tata Power tariffs go up, BEST’s drops

MUMBAI: Tata Power consumers face an overall 6% hike, while MSEDCL users will bear an up to 11% hike over the next seven months. BEST consumers face a drop in tariffs of up to 10%, and Adani Electricity consumers will face a minimal hike of around 1% by April 1.

MERC chairman Anand B Kulkarni said, “South Mumbai can rejoice with the huge drop in tariff under BEST’s jurisdiction. North Mumbai will face a marginal hike of around 1% in tariff for Adani consumers.

revised rates

In a record 27 days, MERC completed public hearings and prepared final tariff orders for the generation, transmission and distribution businesses of power utility firms. It normally takes up to six months.

As per the tariff order, BEST consumers will benefit with a reduction of 5-7% overall decrease in 2018-19 and further reduction of 2-3% in 2019-20. Adani Electricity consumers in the suburbs will have an overall increase of 0.24 % in tariffs in existing amounts and an overall increase of 1% in 2019-20, which is marginal. “The tariff increase will wipe out past gaps, including balance regulatory asset charges (RAC) recovery,” the order stated.

Tata Power consumers will have an overall increase of 4% over existing tariffs now, and a further overall increase of 2% in 2019-20. The tariff increase will wipe out past gaps, including RAC recovery.
For MSEDCL consumers in Bhandup-Mulund, Thane, Navi Mumbai and rest of the state, there will be an average increase of 3-5% in tariffs over existing amounts in 2018-19, and average increase of 4-6% in 2019-20. “It will be a huge burden for us as we face the highest tariffs in the state,” said a consumer representative, adding that there was a hike in industrial tariffs too, which could lead to migration of industries to other states where cheaper power is available. A senior MERC official said the overall hike in industry tariffs was 2-2.5%, which will not be a “big blow” for industrialists. “The hike was necessary to enable adequate power purchase for the utility firm,” he said.

The revised tariffs come into effect in two stages: With effect from September 1 and on April 1, 2019.

Rates for high-tension commercial users, which include shops, business houses and other commercial establishments, were also hiked. For BEST, rates dropped for industrial and commercial users.

Kulkarni said the agriculture tariff was hiked by 5%, while tariff for those in the 0-100 category in the state (MSEDCL) was hiked by 4%.

“Disposal of cases by the regulatory commission was 13 per month in 2016-17 and 17 per month in 2017-18, but in the past five months, cases disposed of went up to 33,” said Kulkarni. He said releasing all tariff orders on one day, in record time, was a “mammoth task”, and he gave credit to staffers and members of MERC who worked on Sundays, holidays and overtime to make it possible.

MERC member Mukesh Khullar said renewable energy was procured in the recent past through open biddings, bringing down costs by 70% for wind and solar energy procurement in the state.

Source: timesofindia.indiatimes
Anand Gupta Editor - EQ Int'l Media Network


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