Electricity tariffs may rise in Mumbai on spike in global coal prices

Maharashtra power regulator had set tariff for Mumbai users for 5 years in March 2020 when Richard Bay coal prices were at $64-72 a tonne. Since then, coal prices have quadrupled

A sharp rise in the international coal prices in the last one year is causing electricity generation and distribution companies like Tata Power and Adani Electricity to raise tariffs from the next financial year for Mumbai consumers.

The Maharashtra electricity regulator had determined the tariff for Mumbai customers for five years in March 2020 when Richard Bay coal prices were hovering at $64-72 a tonne. Since then, the coal prices have gone up by 300 per cent (see chart).

Based on rising coal prices, Tata Power is likely to raise its electricity tariff by Rs 1.10 a unit while Adani