Customers of electricity, who typically receive inflated bills in the summer, will now have to pay extra due to a significant increase in the power rate effective Monday, April 1. Tariff hikes of 5.7% would be imposed on Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) customers and between 44 and 59% on those of Tata Power.
Residential MSEDCL customers consuming up to 100 units monthly will incur an additional 30 paisa per unit. The price increase would be 65 paisa for units 101 to 300, 94 paisa for units 301 to 500, and ₹1.07 per unit for users consuming more electricity than 500 units per month.
Mumbai suburbia’s Tata Power customers will see the greatest rate shock. Residential customers using up to 100 units monthly will pay an additional ₹1.99 per unit, while those using 101 to 300 units will pay an additional ₹2.69 per unit. The increase would be ₹5.33 for 301 to 500 units. Starting on April 1, customers who use more than 500 units of electricity per month will pay ₹5.67 more per unit than they did the previous year. There will be a significant increase of between 44% and 59%. Tata Power serves over 7.5 lakh customers.
There is no reprieve for BEST household power users, as they would now pay an additional 15 paisa per unit for using up to 100 units each month. The hike is 39 paise per unit for usage of 101 to 300 units and 90 paise per unit for usage of 301 to 500 units. The increase in pricing will be ₹1.10 per unit for usage beyond 500 units per month. Approximately 10.50 lakh customers, including residential, commercial, and industrial users, receive power from BEST.
Compared to customers of other power utilities, Adani Energy Mumbai Ltd.’s approximately 31 lakh energy users will experience the least amount of an increase in their electricity tariffs. Adani residential customers will only pay an additional 9 paisa per unit if they use up to 100 monthly units. The monthly hike for 101 to 300 units of power use will be 24 paisas per unit. Customers consuming more than 500 units of electricity would pay one paisa less than the previous tariff, with the increase from 301 to 500 units only being 4 paisa per unit.
Expert in the power sector Ashok Pendse described Tata Power’s power pricing increase as a “mega power tariff shock to its consumers” in his comments. When Tata Power’s industrial and commercial power rates were high a few years ago, they used to cross-subsidize their home customers. Tata Electricity later lowered its commercial and industrial electricity tariff. Thus, residential consumers’ cross-subsidy dropped. Tata Power residential customers would thus experience a massive power tariff shock this year. Pendse stated.
According to MSEDCL power consumers, there would be an average 5.7% price hike. If the fuel adjustment charge (FAC) is considered, the increase is closer to 9.8%, according to Pratap Hogade, head of the Maharashtra State Power Consumers Federation. Additionally, he warned that customers would again have to bear the consequences of FAC because of the excessive demand this summer.
“The tariff has been approved by the Maharashtra Electricity Regulatory Commission (MERC), but the structure has been revised in such a way that residential consumers do not face any burden,” stated Deputy Chief Minister and Electricity Minister Devendra Fadnavis.