MERC decides electricity tariff in Mumbai: Reliance Infra

This comes in the backdrop of Congress, MP Sanjay Nirupam demanding a 50% cut in the power tariff in Mumbai

Reliance Infrastructure has said that the demand for revision in electricity tariff in Mumbai can only be considered by Maharashtra power regulator MERC.

This has come in the backdrop of Congress, MP Sanjay Nirupam demanding a 50% cut in the power tariff in Mumbai.

Demands include scrapping the fixed charge of Rs 100 per bill and regulatory asset charge of Rs 600 for consumption of over 500 units towards infrastructure, and replacement of defective electronic meters imported from China.

In response to this letter, Reliance Infrastructure said, fixed charges are part of the tariff determined by MERC.

"To supply 24x7 power to our consumer, we have to permanently maintain the required infrastructure (physical as well as employees, administration etc.) and service financial obligations (loans, taxes etc) all of which comprises of fixed cost," the company said.

Regulatory Asset Charge (RAC) is also part of tariff determined by MERC, the company added.

It said that all the electric meters procured, installed and tested by Reliance Infrastructure are within permissible accuracy limit.

The company said that it procures power from Dahanu Thermal Power Station, tariff of which is determined by the MERC.

In addition it also purchases power from other sources which are finalised through competitive process and approved by the MERC.

Apart from Reliance Infrastructure, Tata Power and Brihan Mumbai Electric Supply & Transport, an arm of Brihan Mumbai Municipal Corporation, supply power in Mumbai.