Suburbs in for a shock as discom proposes 10-45% tariff hike



Residents of Mumbai’s suburbs may have to brace for a steep hike in power tariff in the 2015-16 fiscal with Reliance Energy, the Mumbai power distribution arm of Reliance Infrastructure, having proposed an increase of 10 to 45 per cent for domestic consumers.

Besides, the company has also proposed a 66 per cent increase in electricity tariff for below poverty line consumers with the variable charges for these users to shoot to Rs 3.3 a unit from Rs 1.99 a unit.

Reliance Energy has proposed the tariff structure to recover a cumulative revenue gap of Rs 1,582 crore since 2012-13. It has submitted its tariff petition to the Maharashtra Electricity Regulatory Commission (MERC), the state’s power regulator, which will take a final decision on the tariff structure after public hearings and recording suggestions and objections.

“Retail tariff of 0-100 units and 101-300 units residential consumers is increased at a lower rate as compared to the other categories. However, the impact of increase in tariffs of consumers using more than 300 units will not be as much due to the telescopic benefit available from lower slabs,” the company said in the petition. More info