Tata Power proposes tariff hike, cites rationalisation need for balance

31 Jan 2024 CW Team

Tata Power, through its subsidiary Discom, unveiled a tariff "rationalisation" proposal that may result in a significant increase in power rates, particularly affecting lower-tier consumers. The utility communicated this adjustment via newspaper advertisements, suggesting an upward revision of the unit rate to Rs 7.37 from the current Rs 3.74 for subscribers consuming up to 100 units per month. Similarly, for those consuming between 101-300 units, the proposed rate is Rs 9.31 per unit, up from the existing Rs 5.89.

Responding to inquiries about the nearly doubled charges for consumers using up to 100 units monthly, a Tata Power official clarified that the Maharashtra Electricity Regulatory Commission had temporarily halted a previous tariff structure in July, reverting to an older one introduced in 2020. The official highlighted that without the stay, consumers would have paid Rs 6.53 per unit, emphasising that the proposed increase is relatively lower than it seems.

The official explained that the earlier tariff structure created a significant price gap between the lowest and highest consumption slabs (above 500 units), where high-end consumers subsidised lower-end ones. The proposed "rationalisation" aims to address this imbalance.

Acknowledging a migration of high-end subscribers to Adani Electricity Mumbai, the official disclosed that Tata Power distribution currently serves 7.5 lakh customers in the financial capital, with 5.5 lakh being residential users consuming under 300 units monthly.

The proposed tariff adjustments are slated to take effect from April 1. Stakeholders are given a 15-day window to provide feedback to the electricity watchdog, and if deemed necessary, the Maharashtra Electricity Regulatory Commission may schedule a hearing on the matter.

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