Scope for further cut in tariffs: Reliance Energy

Reliance Energy Ltd (REL) has welcomed the Maharashtra Regulatory Commission's (MERC) order reducing the tariff charged to over 23 lakh REL customers by 8.50 per cent.

The revised tariffs will be applicable from July 1, 2004.

The company also said there is a scope for further reduction in tariffs.

"REL believes that there still exists scope for further tariff reduction. Bulk supply tariff (BST) paid by REL continues to be almost double of the cost of power generated by REL itself. Availability of open access on transmission network of MSEB and TPC will enable REL to source and supply cheaper power to its consumers in Mumbai," a REL release said.

"REL is committed to providing high quality energy supply to all its consumers and sees this tariff rationalisation effort of MERC as an important step towards enhancing the overall quality of service to its consumers," a REL release said.

"REL has worked to reduce the cost of power for its customers. The reduction has been made possible by getting the high bulk supply tariff reduced. This, together with enhancement of load factor of our own Dahanu power plant, reduction in T & D losses have enabled the reduction in prices," the release added.

REL consumers stand to benefit substantially through reduced charges and a more transparent, simplified tariff structure.