Power tariffs good for city, shock to suburbs
Best : Down 15%, TPC rates lower for residential users
Best : Down 15%, TPC rates lower for residential users
Electricity consumers in the island city have reason to rejoice with the power regulator MERC (Mahararashtra Electricty Regulatory Commission) reducing the average tariffs of BEST by around 15 per cent.
The MERC, which issued an order determining the annual revenue requirement and tariff for 2010-11 for BEST, has for the first time reduced tariffs across all categories. Average tariffs are down around 15 per cent rather than increasing 6.21 per cent as proposed by BEST. The revised tariffs will be applicable from September 1, 2010.
For Tata Power Company’s distribution business (TPC-D), the average tariff is up 15 per cent, but in the residential category, it is down in key segments: consumers using up to 100 units will pay 19.23 per cent less, and those using 100 to 300 units 7.41 per cent less.
The tariffs for low-tension (LT) residential consumers has been decreased between 10.17 and 13.92 per cent depending on consumption range, while those for LT commercial categories are down between 22.96 and 8.43 per cent. LT industrial users will pay between 24.90 and 5.17 per cent less. Fixed charges are unchanged for all categories of low-tension consumers.
Other categories of users including advertisements and hoardings, streetlights, temporary supply, and cremation and burial grounds too will be charged less. The charges for temporary supply for religious purposes are unchanged.
High-tension (HT) consumers in the industry, commercial, group housing societies and temporary categories will pay between 8.89 and 15.88 per cent less.
The MERC has approved a revenue of Rs 2,526.27 crore with the revised tariffs against the Rs 2,965.64 crore proposed by BEST.
The commission has cited several reasons for approval of a lower annual revenue requirement: reduction in purchase expenses on account of additional quantum of power being procured from Tata Power’s generation arm, the consequent increase in its surplus power being sold through the balancing and settlement mechanism, reduction in the revenue gap for 2009-10 after provisional truing up, and reduction in power purchase quantum an account of lower distribution losses (9.5 per cent according to the the commission, 10 per cent according to BEST).