Tata Power may hike power tariff

Almost 60,000 consumers of Tata Power Company (TPC) across Mumbai will have to face increased power billing following State government's order to TPC to continue supplying power to R-Infra, a top company official said today.

"As State orders us to continue supplying power to R-Infra we will have to procure power from outside and that will cost more to our customers," TPC's Executive Director (Operations), S Padmanabhan said here.

Currently, TPC's own power costs an average Rs 4.50 per unit, while electricity from outside costs between Rs 7 and Rs 12. In summer, the traded power rate reaches its peak, he said.

"If we have to continue buying power from the open market to meet their growing demand, the burden will have to be passed on to consumers," he said.

In addition, TPC is also facing a challenge to provide 100 MW to BEST, due to the State's order to continue power supply to R-Infra, despite the signing of a power-purchase agreement (PPA).

"We are also facing (power) shortages to provide 100 MW supply to BEST despite signing a PPA with them," Padmanabhan said.

Earlier, the TPC had decided to withdraw the 500-MW electricity it supplied to R-Infra from April 1. Later, following an R-Infra appeal, the state government requested the TPC to maintain status quo.

The state asked the agency to maintain the status quo till April 30, it may get extended even further.

Reliance Infra in its petition before the Appellate Tribunal for Electricity had asked a direction to TPC to continue with such allocation till the time a level-playing field for competition in retail supply was created and no generating company was in a position to exercise its dominant position to influence competition in retail supply of electricity.