Tata Power consumers to pay more as MERC approves 24% hike
Tata Power consumers will have to pay more for electricity.
On Thursday, the Maharashtra Electricity Regulatory Commission approved an average tariff rise of about 24% for Tata Power for the fiscal year 2024-25, effective from 1 April, 2024.
In its order, MERC said that the present tariff hike is necessitated mainly because there was under-recovery due to staying on tariff as determined in the MTR Order for FY 2023-24. «Had there been no stay, tariff for FY 2024-25 would have resulted in tariff decrease of 13% than approved by the Commission in MTR Order for FY 2024-25.»
Tata Power Spokesperson said that MERC determined the revised tariff of TPC-D for FY 2024-25, resulting in an overall increase due to past approved gaps up to FY 2023-24, to be recovered within FY 2024-25 and remaining within a range of ± 20% of the average cost of supply.
«Despite this, our Residential Tariff for the 0-100 category remains the lowest, while the 101-300 category is only slightly higher than other private players,» a company spokesperson said.
Tata Power had sought a revision in the average price tariff by about 12% to recover ₹927 crore arrears.
The proposed hike increased the price for consumers using less than 100 units to ₹4.96 per kWh from the earlier price of ₹1.65.
Tata Power had, however, also proposed a reduction for 500 and above unit consumers to ₹7.94 from the current ₹8.35 per kWh.
Tata Power's scrip rose 7.64% to end at Rs 424.95 on the BSE on Thursday. Benchmark Sensex ended 0.05% higher.
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