A week after the Maharashtra State Electricity Distribution Company Ltd and Reliance Energy proposed a hike in power tariff, Tata Power has proposed not to make any major changes.
In fact, it has shown a slight reduction in tariff for some categories.
In its multi-year tariff proposal to the Maharashtra Electricity Regulatory Commission (MERC), which will soon be open for a public hearing, Tata Power has proposed to reduce the charges for its residential, commercial and industrial users in the city.
“Tata Power continues to remain the most competitive and affordable power supplier in Mumbai. It has brought down wheeling charges and has allowed consumers to benefit from most competitive prices being offered by the different service providers,” a company statement said.
According to the tariff proposal, the charges for those consuming over 300 units have been reduced by 7.7% and those consuming over 500 units will benefit the most with 8.4% reduction. In case of industrial consumers, the rate has been reduced by 5.9%.
However, residential users consuming between 100 and 300 units, mostly middle-class, will see no change and industries consuming below 20KW will see an increase by 0.3%.
A concern expressed by energy experts is of wheeling charges, which Tata Power has brought down compared to Reliance.
“One should understand that this reduction in tariffs doesn’t mean much for residential consumers, but it can impact commercial and industrial consumers who migrate from Tata to Reliance or vice-versa, if they get a good deal. The deal is a sum of comparing the tariffs, wheeling charges, cross-subsidy rates and asset charge together and can’t be made merely on the basis of tariff change,” said energy expert Ashok Pendse.