Electricity bills of Tata Power consumers in Mumbai to spike 20% as MERC approves tariff hikes

MERC hikes power tariffs for Tata Power consumers.

The Maharashtra Electricity Regulatory Commission has approved an average tariff hike of 22 percent following Tata Power’s request to hike power tariff by 12 percent for the financial year 2024-2025. The revised tariffs will be applicable from April 1.

Residential consumers using 0-100 units of electricity, will have to pay Rs 90 instead of Rs 85 as fixed charges in their monthly electricity bills. The MERC has also increased the energy charge to Rs 2.18 per kWh from Rs 2.

Wheeling charges have been increased to Rs 3.15 per kWh from Rs 1.69 across all slabs for residential consumers.

Those consuming 101-300 units and 301-500 units of electricity, will have to pay Rs 135 instead of Rs 125 as fixed charges in their monthly electricity bills.

The energy charges for 101-300 units category have been increased to Rs 5.36 per kWh from Rs 5.05. For 301-500 category, it has risen to Rs 11.62 kWh from Rs 9.20.

Households using 501 units of electricity and above will have to pay Rs 160 instead of Rs 155 as fixed charges in their monthly electricity bills. The MERC has also increased the energy charge to Rs 12.56 per kWh from Rs 10.

A Tata Power spokesperson said the MERC has determined the revised tariff for the discom 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. This will remain within a range of +/- 20 percent of the average cost of supply, the spokesperson said.

"Despite this, our residential tariff for the 0-100 category remains the lowest, while the 101-300 category is only slightly higher than other private player. Tata Power is committed to supply reliable and quality power supply to its consumers and is optimizing power purchase costs, which could lead to tariff reductions due to negative fuel adjustment charge (FAC)," said the Tata Power spokesperson.

The Commission in its order has approved a net past gap of Rs. 1,374.08 crore as against the net gap of Rs. 873.20 crore claimed by Tata Power. The Commission has tried to strike a balance between the consumer interest and
the legitimate expenses of the distribution licensee, senior power officials said requesting anonymity.

Earlier, on January 29, Tata Power proposed a 5 percent reduction in charges per unit in cases where consumption is 500 units per month or above.