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Home / Cities / Pay less for power in Mumbai homes from April

Pay less for power in Mumbai homes from April

cities Updated: Mar 30, 2020 23:48 IST
Hindustantimes

Power tariff for residential consumers across utilities will be reduced from April 1, 2020.

Tariff for residential consumers of Maharashtra State Electricity Distribution Company Limited (MSEDCL) will be reduced by 5% for the financial year 2020-21, while consumers of Brihanmumbai Electric Supply and Transport Undertaking (BEST) will see an average tariff reduction of 8% for 2020-21.

The final multi-year tariff orders were issued by Maharashtra Electricity Regulatory Commission (MERC) on Monday evening.

Adani Electricity Mumbai Limited (AEML) power tariff for residential consumers will see a reduction of 12.3% for the year 2020-21. It supplies power to 27 lakh consumers in the city.

“The Commission has approved a significant average tariff reduction of around 18% in FY 2020-21,” MERC has stated in its order. Commercial and industrial users of Adani will also see a 20-25% drop in tariff.

Tata Power, which has a consumer base of around 7 lakh in the city, will see a significant drop in the below-poverty-line category where charges will be reduced by 19%.

Other residential categories will see a 10.4% drop in 2020-21 followed by 4.3% increase the next year.

The average tariff reduction for Tata Power is slated to be 19% for the year 2020-21.

Commercial users of Tata will see a 21% reduction in tariff and industry users will see a 23.5% reduction in tariff.

The industrial and commercial users of MSEDCL, which supplies power to the entire state, will see a 10-15% drop in tariff. MSEDCL’s public service offices will also get a 10% reduction in tariff.

Anand Kulkarni, chairperson of MERC, said, “This is the first time in 10 to 15 years that tariff has been reduced to such an extent. This will provide a much-needed boost to the economy in the current situation.”

After the five-year proposals were submitted by the utilities to MERC in January, the commission had invited suggestions/objections from citizens.

Payments during coronavirus

In a significant step to help residents deal with coronavirus, Maharashtra Electricity Regulatory Commission (MERC) has also ordered a moratorium on payment of fixed charges for consumers in the commercial and industrial categories across utilities for the next three billing cycles beginning from March 25. MERC has also suspended meter reading and bill payment at centres, asking utilities to charge consumers on the basis of the average of the past three months.

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