Electricity regulator approves power tariff hike in Mumbai

June 6th, 2008 - 12:52 am ICT by IANS  

Mumbai, June 5 (IANS) The Maharashtra Electricity Regulatory Commission (MERC) Thursday approved a power tariff hike ranging from six to 17 percent for the 2.6 million residential and commercial consumers of Reliance Energy Ltd (REL) in Mumbai. In the case of Tata Power’s consumers, the MERC has approved a tariff hike ranging from 0.6 percent for residential consumers, 16 percent for railways and 5.1 percent for the government and public institutions.

For other bulk consumers of Tata Power, the regulatory body has brought about a reduction in the tariff rate.

REL had earlier submitted a proposal to MERC seeking an electricity tariff hike ranging from four percent to 12 percent.

However, the commission, after going through various power distribution structures and its cost approved 6.3 percent hike for domestic consumers, 17 percent hike for commercial and 12.6 percent jump from the existing rate for industrial consumers.

The commission, while without touching the fixed charges, has increased the reliability charges which covers the expensive power charge.

The MERC, in its order, however, has spared the below poverty line consumers who consume less than 300 units.

As per the revised tariff of REL, those who consume 300-500 units would be charged Re.1 against 45 paise per unit charged last year. For consumers using more than 500 units per month, the charge will now be Rs.1.50 per unit instead of the current 80 paise.

Commenting on the order, REL director Lalit Jalan told reporters: “We will have to bear an additional burden of Rs.6 billion which will be transferred as 70 paise per unit to our consumers. But this will be finalised only if the Supreme Court disallows our plea for an equitable distribution of power from TPC (Tata Power Co)’s total generation of 1,777 MW.”

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