REL proposes 5.8% tariff hike

Reliance Energy Ltd (REL), which is involved in a legal spat with Tata Power Company (TPC) on the issue of standby charges, has proposed a tariff hike of 5.8 per cent to Rs 4.17 per unit from Rs 3.94 per unit, a one-time surcharge of 42 paise for the next 12 months and a per unit additional charge of 59 paise. This is to meet the shortfall in its annual revenue requirement (ARR) of Rs 145 crore for 2003-04.

REL, in its ARR plea filed before the Maharashtra Electricity Regulatory Commission (MERC), ahead of TPC filing its ARR for 2003-04 by October 1, has made these proposals. REL has said it would not resort to tariff increase if TPC reduces its bulk supply tariff, which has increased to Rs 3.37 per unit (excluding standby charges) in 2002-03 from Rs 2.40 per unit in 1999-00. REL said it would have to go in for tariff rationalisation as TPC’s average fuel adjustment charge to REL rose to Rs 1.10 per unit in 2002-03 from 21 paise in 1999-2000. REL proposes to recover, over a period of 12 months, Rs 257.75 crore.