New Delhi (Agency): Tata Power, one of India’s leading power companies, announced on Friday that it’s 7.5 lakh customers in Mumbai will see a significant drop in electricity tariffs. This comes following an order by the Appellate Tribunal for Electricity (APTEL) that has put on hold a price hike proposed by the Maharashtra State Electricity Regulatory Commission (MERC).
APTEL, in its recent decision, has granted temporary relief to Tata Power by postponing the revised tariff schedule on Multiple Tariff Revision (MTR) frameworks that were given a green light by the MERC, according to a statement issued by Tata Power.
During this provisional period, the tariff plan proposed by Tata Power to the MERC back on March 31, 2020, will be back in effect. The company states that this tariff is between 25-35 per cent lower than the existing one, and this reduction will ultimately benefit the customers.
Tata Power expressed its satisfaction with the order, stating it supports the company’s argument that it can offer less expensive electricity to Mumbai’s residents. This decision will allow Tata Power to transfer the financial relief from this order to its 7.5 lakh customers in Mumbai.
In its pursuit of fairness and affordability for its consumers, Tata Power had approached APTEL for a temporary suspension on the latest tariff order dated March 30, 2023, issued by the MERC. This order, if enacted, would have led to higher prices for consumers even though Tata Power maintained a competitive average cost of supply.
Tata Power’s President of Transmission and Distribution, Sanjay Banga, reassured customers, stating, “We will ensure that the relief granted by the APTEL is passed on to our 7.5 lakh consumers, further reinforcing our steadfast commitment to fairness and affordability in all our operations.”