Tata Power seeks regulator nod to raise tariffs and offset fuel cost surge

A spike in coal prices has increased cost of generation

Tata Power has requested the Maharashtra power sector regulator, the Maharashtra Electricity Regulatory Commission (MERC) to relax the ceiling on the fuel-adjustment charges so as to recover the electricity purchase cost.

If MERC agrees, the electricity charges for Tata Power's Mumbai customers will shoot up substantially.

Under the current regulations, Fuel Adjustment Charges (FAC) allow an electricity distribution company to recover any variation in fuel or power purchase costs through monthly electricity bills.

To ensure that a consumer does not face a tariff shock, the recovery of FAC is currently limited to 20 per cent of the existing tariff.

Maharashtra