Expect hefty power bills from April as BEST proposes a 14% tariff hike

Effective April, around 10 lakh residential consumers of the Brihanmumbai Electric Supply and Transport (BEST) Undertaking may have to pay more as the power supplier has proposed a tariff hike of 14.12%.

HT had in its January 22 edition reported that Tata Power Company and Adani Electricity Mumbai Limited had filed their mid-term tariff revision petitions before Maharashtra Electricity Regulatory Commission (MERC).

BEST, in its public notice issued on Monday, said that it had proposed to increase the energy charge by up to 78 paise per unit and the fixed cost by ₹30 to ₹55 per month.

Besides, it has planned a significant hike in the wheeling charges - from ₹1.46 per unit to ₹2.26 per unit for residential and commercial users. For consumers like industries, railway, monorail and metro, BEST has proposed to increase it from the current 50 paise per unit to 84 paise per unit.

“Considering the current average billing rate, the proposed tariff hike for 2023-24 is 14.12% and for 2024-25 it will be 3.50%,” the public notice said.

The undertaking expects a 20.39% rise in revenues from the revised tariffs in the next financial year. “While the current tariff structure will generate ₹3,508 crore in revenues, the revised one, which excludes the fuel adjustment fees in the energy charge, is expected to fetch ₹4,224 crore,” the notice said, inviting objections and suggestions from people.

After hearing the petitions, MERC will deliver its verdict and the new tariffs will come into force from April.

Power expert Ashok Pendse said, “BEST expects a 20% hike in revenues from the revised power tariffs in 2023-24. But this a tariff shock to consumers and MERC should not allow it. Instead of improving the efficiency of the distribution system, BEST is trying to pass its inefficiency to consumers.”

In a city like Mumbai, an average household that uses air conditioners and other equipment consumes between 300 and 500 units a month.