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Tata Power proposes tariff hike

The company, which supplies electricity to about six lakh consumers in Mumbai, has sent a tariff petition to the Maharashtra Electricity Regulatory Commission (MERC), which will take a final call.

| Mumbai | Updated: November 24, 2017 1:55:17 pm
MSEDCL, MSEDCL Damini, Maharashtra State Electricity Distribution Company Limited, maharashtra govt, state power utility, pune news The company’s energy sales towards changeover residential users were highest for the 101-300 units category, followed by the 0-100 units category in 2015-16, shows data provided by the company in its tariff petition.

Soon after Reliance Energy submitted a tariff proposal for 2016-17 that is likely to pinch low-end residential consumers the most, rival Tata Power too has proposed to hike electricity tariff for low-end residential users in the fiscal year ending 2017.

The company, which supplies electricity to about six lakh consumers in Mumbai, has sent a tariff petition to the Maharashtra Electricity Regulatory Commission (MERC), which will take a final call.

For changeover consumers, who form 90 percent of Tata Power’s consumer base, Tata Power has proposed a hike of 38 percent for residential users consuming up to 100 units, and 20 percent for those using between 101 to 300 units.
Accordingly, consumers using up to 100 units will have to pay Rs 1.91 per unit as against the existing Rs 1.38 per unit, while those using between 101 and 300 units will have to pay Rs 4.46 per unit as against the current Rs 3.70 per unit. Changeover consumers are those who get electricity from Tata Power, while using the network of other power distribution companies.

The company’s energy sales towards changeover residential users were highest for the 101-300 units category, followed by the 0-100 units category in 2015-16, shows data provided by the company in its tariff petition.

For customers on Tata Power’s own network too, the company has proposed a hike for its low-end residential clients. Residential users consuming up to 100 units on Tata Power’s own network are proposed to be charged 71 percent more at Rs 4.09 per unit as compared with the current tariff of Rs 2.39 per unit. Residential users falling in the bracket of 101-300 units are proposed to pay 53 percent more at Rs 6.83 per unit as against the existing tariff of Rs 4.47 per unit.

Explaining its tariff philosophy, the company said it has proposed to gradually recover its cumulative revenue gap of previous years amounting to Rs 1,240.7 crore over the next four years up to 2019-20. A source close to the development who did not wish to be named said, “Tata Power is trying to bring about uniformity in tariffs not just within the company, but also as compared to other power distributors. It has made its tariff proposal keeping this in mind. The tariff of Tata Power is currently the lowest as compared with other electricity distribution companies.”

While Tata Power has proposed a steep hike in tariffs for low-end residential consumers, it has tried to provide some relief for higher end consumers in the residential category. Changeover residential users consuming between 301-500 units are to pay 10 percent less in 2016-17 at a price of Rs 6.75 per unit as against the current Rs 7.46 per unit.

Similarly, changeover residential consumers using above 500 units will have to pay 14 percent lower than what they are currently paying, with the company having proposed a tariff of Rs 8.14 per unit, against the current Rs 9.43 per unit.

Even for customers on Tata Power’s own network, the company has proposed a milder hike for high-end residential users. Accordingly, those in the 301-500 units bracket are proposed to pay 9 percent more at Rs 9.35 per unit as against the current Rs 8.61 per unit. Those consuming over 501 units are proposed to pay just 2 percent more at Rs 10.87 per unit as against the current Rs 10.71 per unit.

Earlier, Reliance Energy sent a proposal to MERC recommending an average 5.26 percent tariff hike, with the proposed hike being steepest for consumers using up to 300 units. The company has proposed a 10 percent jump for consumers falling in the 0-100 units bracket, taking the power tariff to Rs 5.93 per unit. Similarly, for residential consumers using between 100-300 units, rates have been proposed to be increased by 8 percent to Rs 8.31 per unit.

The company supplies power to users from Bandra to Bhayander on the western side, and Chunabhatti to Vikhroli and Mankhurd on the eastern side, and adjacent areas of Thane district.

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