Tata Power proposes tariff revisions in Mumbai with sharpest jump for lower end consumers

Tata Power has submitted a tariff hike proposal to the Maharashtra Electricity Regulatory Commission, with proposed increases ranging from 58% to 121% for residential consumers using up to 300 units per month. The company has stated that there was an error in the tariff table published in the media and has made an additional submission for tariff correction. A Tata Power spokesperson clarified that the proposed changes aim to rationalize the residential tariff and make it more competitive.

Mumbai: Tata Power Company which distributes electricity to around 7.5 lakh consumers in the city has submitted a tariff hike proposal to the state electricity regulator, Maharashtra Electricity Regulatory Commission (MERC), for 2024-25. Compared to the existing applicable tariff for residential consumers up to 300 units per month, the proposed hike will be around 58% to 121%.

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Tata Power on Monday published the details of its tariff hike proposal for the electricity distribution business. It has proposed an energy charge of ₹ 4.96 per unit from April 2024 for residential consumers using up to 100 units per month, ₹6.97 for consumers using 101 to 300 units per month and ₹8.40 per unit for the use between 301 to 500 units per month. For residential consumers using above 500 units of electricity per month will be charged ₹7.94 as an energy charge. Compared to the existing energy charges, consumers of Tata Power paying the proposed charges will have a huge impact on the monthly bills.

As per the advertisement issued by the company, it has proposed a 66 to 201% hike for electricity consumers using up to 300 units per month. However, a Tata Power spokesperson said there was some error in the tariff hike table published in the media and the company has made an additional submission to MERC and that submission is on tariff correction only. The spokesperson also said that as there is a stay to the MERC order of April 2023 the tariff approved in 2020 is applicable so the difference between the existing and proposed tariff is looking high.

“Tata Power has proposed to rationalise the LT residential tariff. Our lower-end residential tariff (0-100 unit and 101-300 unit slab) was very low and there were ₹5-6 per unit differences across the spectrum of residential slabs. To rationalise the same, Tata Power has proposed a marginal increase in these two slabs i.e. 13% increase in the 0-100 slab and a 3% increase in the 100-300 unit slab. Subsequently, 17% and 20% reductions are proposed in 300-500 units and above 500 unit slabs respectively compared to the MTR tariff approved on March 23 for FY25. Overall LT residential tariff will be reduced and will be competitive.” said the spokesperson.