Power regulator cuts island city’s bills by 15%

While 23 lakh Reliance Infrastructure consumers in the suburbs worry about rising power bills, 10 lakh power consumers in the island city can breathe easy after the Maharashtra Electricity Regulatory Commission (MERC) reduced their monthly bills by an average of 15 per cent.

While 23 lakh Reliance Infrastructure consumers in the suburbs worry about rising power bills, 10 lakh power consumers in the island city can breathe easy after the Maharashtra Electricity Regulatory Commission (MERC) reduced their monthly bills by an average of 15 per cent.

HT Image

The regulator, on Tuesday, allowed the Brihanmumbai Electric Supply and Transport (BEST) undertaking to reduce its tariff although it had asked for a hike of 6.21 per cent.

The new tariff will be applicable from September 1, 2010.

MERC secretary KN Khawrey said BEST’s tariff was reduced because its power purchase costs and distribution losses are low.

MERC has also reduced tariff for Tata Power Company’s (TPC) domestic consumers. Those TPC consumers who use 0 to 100 units of power a month will pay 19.23 per cent less and those who consume 101 to 300 units will see their bills go down by 7.41 per cent. Domestic consumers are those who use 500 units or below a month.

Households that consume 301 to 500 units using air conditioners or microwave ovens will have to pay 4.76 per cent more. Those who use more than 500 units will have to pay 8.16 per cent more. TPC’s rates are the lowest in the state. Commercial and industrial users will have to pay between 8.50 and 21.95 per cent.

MERC allowed TPC to increase tariff for most categories because it spent more on buying power. “TPC had to buy power at higher rates to cater to its increased consumer base,” Khawrey said.