The Appellate Tribunal for Electricity (APTEL), on July 14, 2023, passed an order granting interim relief sought by Tata Power by staying the Maharashtra State Electricity Regulatory Commission’s (MERC) revised tariff schedule on MTR framework.
Customers of Tata Power in Mumbai will get the benefit of this order as the company will be able to pass on the relief to its 7.5 lakh consumers.
Tata Power had approached APTEL seeking an interim stay on the tariff order, dated March 30, 2023, issued by MERC. The said tariff order would have increased the price paid by consumers despite Tata Power maintaining a competitive average cost of supply.
As already reported by T&D India on June 7, 2023, the MERC tariff order for FY24 had fixed tariff for 22 categories of Tata Power’s Mumbai distribution business (referred to as TPC-D), tariff is lower than that of Adani Electricity Mumbai Ltd, in just three tariff categories. Two of these three categories are of the “low consumption” type. However, tariff has been set significantly higher in the case of C&I (commercial & industrial) consumers, which account for the bulk of the revenues from the electricity business.
In the interim period, the tariff proposed by Tata Power to MERC on March 31, 2020, becomes applicable once again. This tariff is 25-35 per cent lower than the existing one and will be for the benefit of the consumers.
Testament to Tata Power’s dedication
Sanjay Banga President, Transmission and Distribution, Tata Power, said, “This interim stay is a testament to Tata Power’s dedication to delivering affordable electricity to the people of Mumbai. It validates our commitment to providing sustainable power at cheaper rates, and our customers will directly reap the benefits of this decision. We will ensure that the relief granted by the Hon’ble APTEL is passed on to our 7.5 lakh consumers, further reinforcing our steadfast commitment to fairness and affordability in all our operations.”
Also read: MERC Approves Tariff And Combined PPA Of KRC Discoms
Affordable and reliable power
According to Nilesh Kane, Chief of Mumbai Distribution, Tata Power, “With a commitment to excellence, Tata Power has long been recognized for its dedication to providing power at highly competitive rates in Mumbai. Serving over 7.5 lakh customers in the city, the Company’s customer-centric approach remains the cornerstone of its operations. Hon’ble APTEL’s Order represents a pivotal opportunity to strengthen this commitment, ensuring the delivery of quality, affordable, sustainable, and reliable power supply that benefits both customers and the wider community.”
