BEST not to collect TDLR from power consumers after November
Since the last four years, the BEST would recover the losses incurred by the bus transport business from its power consumers through TDLR.
IN A respite to more than 10 lakh south Mumbai electricity consumers of Brihanmumbai Electricity Supply and Transport (BEST), the transport division loss revenue (TDLR) will not be collected from supply consumers after November. This comes after the Supreme Court had asked the undertaking to stop collecting the TDLR from its power consumers through its monthly power bills earlier this month.
Since the last four years, the BEST would recover the losses incurred by the bus transport business from its power consumers through TDLR.
After the committee approval of disallowing TDLR in March, the matter was further discussed and approved in Maharashtra Electricity Regulatory Commission (MERC) after which the court gave its nod on the revenue in its hearing on October 4.
“This means that the power bills of consumers issued in November will be the last month to include the levy of TDLR in its supply bills. Post November, no supply consumer of BEST will be charged with the extra costs on it. Ahead of it, new tariffs will be prepared by MERC which will not have the inclusion of this surcharge,” said Jagdish Patil, General Manager, BEST.
Of the 400 meter readers at present in BEST, the undertaking had divided its supply consumers in 21 cycles for October.
Of these, four cycles (high-voltage end consumers) were charged with TDLRs in their power bills, while the rest were exempted.
The undertaking now plans to adjust their bill amounts in the coming month by charging them lesser than the surcharge levied before.
“Those four cycles which include almost two lakh power consumers were charged with TDLR in October and so their amounts will be compensated in the power bill charged for October in November.
However, the undertaking is yet to receive Rs 15 crore from a total of Rs 2,876 crore which MERC had allowed us to incur through this surcharge. Thus, the power bills of the remaining eight lakh consumers will be levied in such a way that we are able to get back this money,” Patil added.
Sources from BEST said the undertaking had received close to Rs 3,500 crore through this surcharge.
Till 2015-16, the supply division of the undertaking had managed to remain in profits due to the surcharge received from its consumers.
“Since the last couple of years, we were always on the plus side as far as accounts of supply division is concerned. However, post the discontinuation of levying TDLR, we will have to look at other options of making do with its loss. Among the measures suggested, charging a cess on property tax, increasing the base consumers and limit areas of BEST electricity supply and asking the parent organisation — BMC — for money remain some of the options,” Patil added.
The BEST has to repay almost Rs 1,600 crore of loan taken to the corporation, of which it pays almost Rs 40 crore each month with a 10 per cent interest.
To compensate the absence of TDLR, the BEST had also asked for a grant of Rs 1,000 crore to the corporation of which Rs 400 crore was asked on an immediate basis which still awaits a nod.
“Not levying TDLR from November comes as a welcome move. However, what the BEST now has to look at is repaying the extra amount charged in the form of TDLR from its consumers which amounts to almost Rs 350 crore,” said Ravi Raja, BEST committee member.
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