MMRDA to switch power supplier for mono, metro services

MMRDA switches to cheaper power supplier for Monorail and Metro corridors 2A and 7 due to Tata Power's steep hike in tariffs

Mumbai: The Mumbai Metropolitan Region Development Authority (MMRDA) has decided to switch over from Tata Power to a cheaper power supplier for the Monorail and Metro corridors 2A and 7. The decision has been taken owing to a steep hike Tata Power’s tariffs effective April 1.

A monorail line being tested at Wadala (Kunal Patil/HT Photo)

As per the existing tariff schedule for 2023-24, the rate for the monorail metro corridors is ₹4.92 per unit, whereas according to the proposed tariff for 2024-25, the rate will be ₹7.37 per unit. Tata Power has also hiked the fixed charges from ₹375 to ₹400.

Senior officials from MMRDA confirmed that instructions have been issued to begin the process of switching over to a different power supplier, most likely to Adani Electricity, which charges ₹6.15 per unit. The process for switching the power distributor for both modes of public transit is underway, they added.

Metro lines 2A and 7, which operate along a 20-km corridor spanning Andheri (W)-Dahisar-Gundavali in the western suburbs, consume 12-15 megawatt (mw) electricity per day, including for traction power and supply to metro station premises. It powers 22 metro rakes running 250 plus services every day, ferrying 2-2.50 lakh passengers.

The 20-km stretch of the monorail spanning Chembur-Wadala-Jacob Circle consumes 2-3 mw for running 10 rakes, ferrying close to 15,000 passengers daily.

Sources said that both Monorail and Metro rail services incurred losses to the tune of ₹529 crore and ₹223 crore respectively last year.

Meanwhile, Tata Power officials said that as per their records to date, the MMRDA has not applied for a power supply switch. “It is noteworthy that there is hardly any difference in the tariffs between Tata Power and Adani Electricity, as the latter’s tariff includes Fuel Adjustment Charge (FAC) in addition to its base tariffs. Last year, Tata Power’s tariff was significantly lower, resulting in a refund of ₹350 crore to consumers over the next three months as per guidelines of the regulator. It is also notable that over the past one year, there is minimal movement of consumers from one utility to another. Further, several MMRDA entities that switched over in the past from Tata Power have returned to Tata Power for better and affordable service provided by us.”

Tata Power, which supplies electricity to around 7.5 lakh consumers, has hiked tariffs by 24% across all its platforms to recover arrears amounting to ₹1,374.08 crore through electricity bills. Residential consumers, who comprise nearly 90% of the company’s customer base, will take the maximum hit. The Maharashtra Electricity Regulatory Commission said it had tried to strike a balance between consumer interests and the legitimate expenses of the distribution licensee while giving a nod to the hike.