Maharashtra allows companies to charge more for electricity

Mumbai’s electricity regulatory authority has agreed to allow Tata Power, Reliance Infrastructure and Mahavitaran to increase their tariffs.

The tariff would be increased by around 5.2% for Tata Power, 3.92% for Reliance Infra and 2.44% for Mahavitaran.

The new rates will now be applicable from June 1.

"Mumbai is an island city faced with a unique situation where it has multiple distribution licensees, RInfra, Tata, and BEST in the same supply area. All three have different cost of supply, consumer mix and consumption mix wheeling charges. Hence, different tariffs for the same category of consumers depending on the licenses areas", MERC said.

According to the new tariff, subscribers below the Poverty Line for Reliance, TPC and Mahavitaran will pay Rs 2.72, Rs 1.41 and 87 Paise per unit respectively.

The fixed costs for all in this category have been increased to Rs 10.

Fixed cost for all three other utilities for those using up to 100 units has also been increased to Rs. 50.

For Reliance the new tariffs are Rs 4.79 (Rs 4.61) for consumers using up to 100 units, Rs 6.54 (Rs 6.31) for up to 300 units, Rs 8.26 (Rs 7.43) for up to 500 units and Rs 10.08 (Rs 9.25) for residents consuming more than 500 units.


For Mahavitaran, the new tariffs are Rs 3.76 (Rs 3.86) for consumers using up to 100 units, Rs 7.21 (Rs 7.20) for up to 300 units, Rs 9.95 (Rs 9.50) for up to 500 units and Rs 11.31 (Rs 10.33) for residents consuming more than 500 units.

The authorities have however agreed upon a 10% reduction for the Railways.

(Image credit: Indiatimes)