Consumers of the Brihanmumbai Electric Supply and Transport (BEST) undertaking in the island city will continue to pay high tariffs for a few years. This is because their supplier has proposed to increase the average cost of supply for the next four years. BEST also plans to recover losses incurred by the transport division.
In its multi-year business plan that was published for public perusal on Friday, BEST predicted that its distribution losses would increase and collection efficiency would fall. This in turn would translate into financial losses.
The existing average supply cost of the company is Rs. 8.91 a unit. However, tariffs are directly proportionate to monthly consumption implying that not all consumer categories are charged this rate.
As per the company’s prediction, the average cost in 2013 will be Rs. 10.85 a unit followed by Rs. 11.39 a unit in 2014. In 2015 the cost is expected to come down to Rs. 9.98 a unit and to Rs. 8.81 a unit in 2016. These rates exclude government duties, transport losses and regulatory charges.
The average cost of supply for these years is expected to be higher by Rs. 3-5 per unit than the purchase cost.
The BEST also plans to recover transport losses worth Rs. 692 crore from 10 lakh power consumers in the island city in 2012-13.
As per apex court’s order in this regard, it also proposes to recover losses worth Rs. 733 crore in 2014, Rs. 253crore in 2015 and Rs. 270 crore in 2016.
If the Maharashtra Electricity Regulatory Commission (MERC) approves the multi-year business plan, BEST will be authorised to revise tariffs when unavoidable factors impact its business.
While predicting peak-hour demand projections for the next four years, BEST expects island city’s mill land areas to consume150 megawatts (MW) by 2016. This is almost 120 MW more than this year’s projections