Power Tariff may increase by 15% to 20% in next Five Years
The Brihanmumbai Electric Supply and Transport (BEST), that supplies power to south Mumbai, on Wednesday proposed to gradually increase the average cost of supply from its existing average tariff of Rs 4.22 per unit to Rs 5.60 per unit by 2015-16. Power tariff for around 10 lakh consumers in the island city of Mumbai-—from Colaba to Sion—may increase by 15% to 20% over the next five years.
According to the five-year plan, the average tariff for residential consumers in 2011-12 will be Rs 4.45 per unit from the existing Rs 4.22 per unit. Though BEST has projected an increase in its revenue to 30-35% by 2016, the tariff hike will be in the range of 15-20% over the next five years.
In 2012-13, the average tariff is expected to go up to Rs 4.69 per unit from Rs 4.45 per unit. In 2013-14, the average tariff will be Rs 4.97 per unit. In 2014-15, it will go up to Rs 5.24 per unit, followed by another rise up to Rs 5.60 per unit in 2015-16.
The proposal was put up before the BEST committee for approval on Wednesday evening before it is submitted to the Maharashtra Electricity Regulatory Commission (MERC). The MERC will finalize the tariff based on the proposal.
Interestingly, Reliance Infrastructure (R-Infra) has proposed a reduction in its tariff in a plan submitted to MERC seeking 25 years’ extension in their supply licence. Their licence is ending on August 15. Maharashtra State Electricity Distribution Company Ltd (MSEDCL), too, while seeking a licence to supply power in suburban areas, has proposed the hike similar to BEST. According to MERC sources, the Tata Power Company (TPC) is yet to submit its multi-year tariff plan, which it is expected to do soon.
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