Hotel bills to get costlier, if power tariff is hiked | mumbai | Hindustan Times
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Hotel bills to get costlier, if power tariff is hiked

mumbai Updated: Nov 24, 2009 01:18 IST
Shashank Rao

Hotels in south Mumbai have threatened to hike bills by nearly 25 per cent, if power tariff is increased.

On Monday, Guruprasad Shetty, spokesperson of the Association of Hotel and Restaurant, asked the Maharashtra Electricity Regulatory Commission (MERC) at a hearing to allow Tata Power to supply power to hotels in south Mumbai.

“Presently, we pay Rs 8.50 per unit to the Brihanmumbai Electric Supply and Transport (BEST) undertaking — 130 per cent more than Tata Power rates [Rs 3.85 per unit]. Any further hike in power tariff would force us to increase prices,” said Shetty.

The hotel industry incurs nearly one-third of its expenses from power tariffs and any further increase — the BEST has proposed a 40 per cent hike for 2010-11 — will reflect on the menu card.

The association asked MERC to allow Tata Power – which supplies power to BEST – ‘open access’ instead of BEST supplying them electricity.

Tata agreed to supply power to consumers in BEST’s area of supply, if they get a no-objection certificate (NOC) from the undertaking.

But when BEST refused to give the NOC, the regulator’s chairman VP Raja asked it to submit an affidavit citing reasons of the disapproval. A hearing on whether Tata Power can supply in BEST’s area will be held on December 27.