Electricity tariff for 27 lakh consumers may drop in April…….Chittaranjan Tembhekar
Mumbai : The balance of power in the city is set to change,and from the new financial year,suburban Mumbaikars may not have to pay the average high tariff of Rs 6.50 per unit.The Bombay High Court,on Tuesday,said it was illegal for thestate governmenttoforceT ata Power Company (TPC) to supply power to Reliance Infrastructure (RInfra ).This means that RInfra will have to purchase outside power to meet the demand,and TPC will have an additional 200 MW for distribution.In other words,27 lakh Mumbaikars in the suburbs can expect to get some relief from April 1 onwards.
Until now,RInfra has been purchasing 600 MW of expensive short-term power from outside Maharashtra,and another 200 MW from TPC.Power experts say that with the HCs ruling,the Maharashtra Electricity Regulatory Commission (MERC) can and is expected to direct RInfra to buy 800 MW of medium- and long-term power,which will be cheaper than short period contracts.The high court ruling has indirectly indicated that MERCwhich is expected to give its verdict on the power tussle between TPC and RInfra in the coming weekshas to direct RInfra to purchase cheaper power for its consumers in suburban Mumbai, said an expert.
RInfra released a statement saying that it will continue to purchase 200 MW power from TPCuntilMERCdecidesotherwise.Consumers will not be impacted.RInfra will continue to get at least 200 MW from TPC at regulated rate till MERC decides the issue. But sources close to RInfra said that the company has already promised MERC that it will purchase long-and medium term cheaper power in phases.Also,MERC is expected to follow the HC ruling and ask RInfra to purchase power from the open market.
Ultimately competition will benefit the consumers.If consumers feel that RInfra tariff is more,they can shift to TPC.Both companies will have to provide electricity to Mumbaikars at competitive rates.A certain number of consumers can also shift to TPC to avoid a cross-subsidy row, said an expert working closely with MERC.
Consumers in the island city pay less for their power,andexperts are nowwondering whether suburban Mumbaikars,too,will enjoy this same benefit by April 1.That,however,will depend on MERCs ruling.RInfras new tariff may be substantially lower than the present rates,but it may not be cheaper than TPCs tariff, said a source.
Gunning for power
Tarm state MSEDCL s power and distribution three infrastructure firms have expressed their interest in taking over Reliances power distribution business.Beisdes MSEDCL,Torrent Power Limited,Lanco Infrastructure Limited and Indiabulls Power Limited submitted their expression of interest (EoI) to MERC on Monday.RInfra and TPC are also in the fray.They already hold a license to distribute power in the suburbs.RInfra has applied for an extension of 25 years.TPC has filed a separate petition asking MERC to consider its EoI.The deadline is August 15.
Tarm state MSEDCL s power and distribution three infrastructure firms have expressed their interest in taking over Reliances power distribution business.Beisdes MSEDCL,Torrent Power Limited,Lanco Infrastructure Limited and Indiabulls Power Limited submitted their expression of interest (EoI) to MERC on Monday.RInfra and TPC are also in the fray.They already hold a license to distribute power in the suburbs.RInfra has applied for an extension of 25 years.TPC has filed a separate petition asking MERC to consider its EoI.The deadline is August 15.
* BREAKING DAWN: Competitive rates is on the cards