MERC approves average tariff cut of 1.93% for RInfra

The regulator allows 1.85% hike for Tata

Mumbai electricity consumers have been spared from heavy tariff shock.

The Maharashtra Electricity Regulatory Commission (MERC) on Friday approved a 1.93 per cent reduction in the average tariff for 2016-17, against an increase of 6 per cent sought by Reliance Infrastructure's (distribution) Mumbai area, with a consumer base of 3 million. For 2017-18, MERC reduced RInfra’s (D) tariff by 0.76 per cent, 1.06 per cent in 2018-19 and 15.13 per cent in 2019-20, against an annual increase of 3 per cent proposed by the company. The revised tariff will be effective from October 1.

The regulator gave its nod for an increase in the average tariff, including regulatory asset charges (RAC), of 1.85 per cent for 2016-17, against a reduction of 17 per cent excluding RAC sought, as by Tata Power (distribution) in Mumbai area, with a consumer base of over 600,000. It also increased the average tariff by 2.26 per cent in 2017-18 and 2.51 per cent in 2018-19 and reduced the average tariff by 14.93 per cent in 2019-20, including RAC, against an increase of 6 per cent in 2017-18 and 2 per cent in FY 2018-19 and reduction of 2 per cent in 2019-20 excluding RAC, as proposed by Tata Power (D). The revised tariff will be effective from October 1. For RInfra (D), the regulator has assessed the average cost of supply (ACoS) of RInfra (D), including the RAC, as Rs 9.40 a unit in 2016-17,  Rs 9.33 a unit in 2017-18, Rs 9.23 a unit in 2018-19 and Rs 7.83 a unit in 2019-20.

For Tata Power (D), the regulator  has assessed the average cost of supply, including RAC, as Rs 6.79 per unit in 2016-17, Rs 6.95 per unit in 2017-18, Rs 7.12 per unit in 2018-19 and Rs 6.06 per unit in 2019-20.  

MERC has determined the tariffs of R (D) and Tata Power (D) for the 0-100 units residential category such that they are not widely different. For RInfra's (D) 851,000 consumers with monthly consumption of 0-100 units, MERC has reduced the tariff to Rs 4.10 per unit against the existing tariff of Rs 5.61 per unit. For Tata Power's (D) 70,000 consumers with monthly consumption of 0-100 units, MERC has increased tariff to Rs 3.40 from the existing Rs 2.42 per unit. For 151,000 Tata Power D's residential consumers using up to 100 units per month, who have changed over from R Infra (D), the tariff has been reduced to Rs 4.01 per unit from Rs 4.56 per unit.