Tata Power hikes tariff by 24% on average from April 1

According to the MERC order dated March 7, residential consumers, who comprise nearly 90% of the company’s consumer base, will take the maximum hit, with an average 22% increase in tariffs

Mumbai: Come April 1, over seven lakh consumers of Tata Power will have to pay tariffs that are 24% higher on average than current rates as the Maharashtra Electricity Regulatory Commission (MERC) has approved the company’s plan of recovering arrears amounting to ₹1,374.08 crore through electricity bills. HT had, on February 28, reported about the possibility of hike in tariffs after the MERC criticised a few points in Tata Power’s proposal.

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According to the MERC order dated March 7, residential consumers, who comprise nearly 90% of the company’s consumer base, will take the maximum hit, with an average 22% increase in tariffs. Those who consume up to 100 units will be charged ₹5.33 per unit as against the existing ₹3.69 per unit, while those who consume 500 units or more electricity will be charged ₹15.71 per unit, up from the existing rate of ₹11.69 per unit.

Group housing societies who buy power in bulk and have separate connections will have to pay ₹8.74 per unit compared to the current rate of ₹6.87 per unit. Tariffs for public electric vehicle charging stations installed by Tata Power have also been hiked from ₹6.11 per unit to ₹8 per unit. The company has nearly 1,000 electric vehicle charging points in Mumbai, including 44 points in public spaces, 385 inside residential societies, 531 fleet charging points and 58 points in malls and commercial complexes.

The MERC, which approved an average tariff hike of around 24% as against 12% claimed by the company, said in the order that it tried to strike a balance between consumer interests and the legitimate expenses of the distribution licensee.

A Tata Power spokesperson welcomed the order, saying, “MERC has determined the revised tariff for FY 2024-25, resulting in an overall increase due to past approved gaps up to FY 2023-24, to be recovered within FY 2024-25 and remaining within a range of +/- 20% of the average cost of supply. Despite this, our residential tariff for the 0-100 units category remains the lowest, while for the 101-300 units category, it is slightly higher than rate of other private players. Tata Power is committed to supply reliable and quality power supply to its consumers and is optimising power purchase costs, which could lead to tariff reductions.”