MSEDCL, Adani, Tata Power to hike electricity rates from today(REUTERS)
MSEDCL, Adani, Tata Power to hike electricity rates from today(REUTERS)

MSEDCL, Adani, Tata Power to hike electricity rates from today

The April 1 hike comes after the state discom raised the per-unit cost of electricity by 3% in September 2018, after getting an approval from the Maharashtra Electricity Regulatory Commission (MERC).
By HT Correspondent | Mumbai
UPDATED ON APR 01, 2019 08:18 AM IST

Electricity in the state is set to get more expensive from April 1. While the Maharashtra State Electricity Distribution Company Limited (MSEDCL) will hike the cost of electricity by 3% for every unit, Tata Power and Adani Electricity — which cater to Mumbaiites only — will increase the price by 2% and 1% respectively from April 1. However, most south Mumbai residents can rejoice as the Brihanmumbai Electric Supply and Transport Undertaking (BEST) is expected to slash power charges by 3%.

MSEDCL supplies power to more than 2.5 crore residential, commercial and industrial consumers in the state. It supplies power to Kanjurmarg, Bhandup and Mulund in Mumbai suburbs and to the rest of the state, including metropolitan areas of Kalyan, Thane and Navi Mumbai.

The April 1 hike comes after the state discom raised the per-unit cost of electricity by 3% in September 2018, after getting an approval from the Maharashtra Electricity Regulatory Commission (MERC). The discom hopes to meet losses of more than Rs 20,000 crore from both the hikes, said officials. An MSEDCL official said the hike was also essential to purchase adequate power to meet the increasing demand. While MSEDCL supplies nearly 18,000 mega watt (MW) power to the state, the demand goes up to 24,000MW during peak summer.

MERC also approved a tariff hike of 2% for TATA Power, which supplies electricity to more than seven lakh residents in Mumbai. Adani Electricity, which caters to 27 lakh residents, will hike its rates by 1%.

Meanwhile, BEST, which supplies power to around 10 lakh consumers, primarily in south Mumbai, is expected to slash its rates.

Ashok Pendse, a power activist said, “After the Supreme Court order which restricted BEST from charging consumers for loss of revenue in the transport division, the organisation has initiated changes. The benefits of this are being passed on to consumers.” Another power expert, who did not wish to be named, said the consumer profile of BEST is healthier as compared to MSEDCL’s, “which faces major losses in the agriculture sector”.

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