Best buys More power for south Mumbai | mumbai | Hindustan Times
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Best buys More power for south Mumbai

The Maharashtra Electricity Regulatory Commission has endorsed the proposal of the Brihanmumbai Electric Supply and Transport Undertaking, which supplies power to the island city, to buy an additional 100MW from Tata Power Company for eight years. Dharmendra Jore reports.

mumbai Updated: Sep 06, 2010 00:54 IST
Dharmendra Jore

If you live in the island city, you don't have to worry about higher electricity bills. The Maharashtra Electricity Regulatory Commission (MERC) has endorsed the proposal of the Brihanmumbai Electric Supply and Transport Undertaking (BEST), which supplies power to the island city, to buy an additional 100MW from Tata Power Company (TPC) for eight years.

This amount of power is enough for Thane's domestic needs.

The power comes at a regulated price of Rs 3.20 per unit (plus fuel adjustment charges), as opposed to the higher rate at which the BEST would otherwise have had to buy power from the market. The move benefits the BEST's 10 lakh consumers, who would have had to bear the burden of expensive power purchase.

It will also ensure uninterrupted supply up to Mahim and Sion. As south Mumbai sees more and more development, its electricity needs are expected to grow by six to seven per cent a year. The new power purchase agreement is valid from April 1, 2010 to March 31, 2018. Since early this year, the BEST has been getting 100MW from TPC, pending MERC approval.

In its September 1 order, the MERC said the approval was subject to its directions after receiving the opinion of the Competition Commission of India on whether the agreement harms the competitive spirit; Reliance Infrastructure had objected to the agreement.

BEST does not need 100MW round-the-clock. Rakshpl Abrol, a consumer representative, said: "The case will not hold because the SC has allowed TPC to select its customers."