BEST proposes to hike power tariff by 5-7%

The Brihanmumbai Electricity Supply and Transport Undertaking (BEST) has proposed to hike its electricity tariff by 5% to 7% across all categories of consumers,

The Brihanmumbai Electricity Supply and Transport Undertaking (BEST) has proposed to hike its electricity tariff by 5% to 7% across all categories of consumers, excluding the below poverty line (BPL) card-holders. For the latter, BEST has proposed to reduce tariffs by 1%.

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BEST, which supplies power to consumers in the island city, has submitted a tariff petition to the state power regulator — the Maharashtra Electricity Regulatory Commission (MERC). People can send their objections or suggestions regarding these proposals by January 31. A public hearing will be conducted regarding the proposal at the World Trade Centre in Cuffe Parade on February 4.

BEST supplies power to around 10.15 lakh consumers between Sion and Colaba.

BEST has proposed to increase the tariff for each of the first 100 units consumed monthly for residential use by nearly 7% to ₹1.55, from the current ₹1.45. The cost of each unit of power consumed between 101 and 300 units, 301 and 500 units, and above 500 units has been proposed to be increased by an average 5% to ₹3.91 (from ₹3.70), ₹6.65 (from ₹6.31) and ₹8.13 (from ₹7.72), respectively.

BEST has also proposed to hike tariffs for the commercial and industrial sectors by almost 5% to 7%.

The undertaking has justified the proposed increased tariffs citing steeper prices of fuel, including coal, and consequently higher cost of power generation. “These are the proposed tariffs on which hearing is to be held. Now it is totally dependent on MERC whether it will accept or reject the same,’’ said Anil Patil, executive engineer, BEST supply department.

The undertaking expects to sell 4,643.66 million units (MUs) of power in 2020-21, which is 4% higher than the 4,457 MUs consumed in 2019-20. The distribution loss has been estimated at 5.50% for 2020-21 and 5.40% for 2021-22.

The energy requirement will be 4,913.93 MUs in 2020-21 and 4,913.93 MUs in 2021-22.

BEST has pegged the annual revenue for 2020-21, with the proposed tariff rates, at ₹3,434.54 crore.

The annual revenue will be ₹3,275.61 crore with the existing tariff rates, the undertaking has stated in its proposal to MERC.