Electricity Bill Hike: Tata Power has proposed a steep increase in electricity rates in Mumbai. This will affect people with low income and below the poverty line. Know how much the bill will be affected.
Ahead of the elections, Tata Power Company Limited has proposed a huge increase in electricity tariffs for Mumbaikars, especially the lower tier consumers, as part of the tariff rationalization initiative. The average increase proposed for all consumer groups in 2024-2025 is 12 per cent, but the burden will fall most heavily on low-income residential consumers and below poverty line users, with proposed increases of a staggering 201 per cent and 89 per cent respectively. High-level users and some public service users will get some relief.
Unit will increase by 66%
According to the distribution company’s announcement, Tata Power is planning to increase the per unit rate from the current Rs 3.74 to Rs 7.37 for customers consuming up to 100 units per month. For those consuming between 101-300 units, the proposed increase in rates is from Rs 5.89 to Rs. It is Rs 9.31 (66 percent).
How much increase is proposed?
The proposals include: Families below poverty line: 89 per cent tariff increase; 0-100 units: 201 percent; 101-300 units: 66 percent; 301-500 units: 10 percent; And group housing society: 41 percent. Other sectors that may see an increase are: EV charging stations: Tariff increase by up to 71 per cent; Commercial consumers: 8-25 percent; Industrial consumers: 25-38 percent; And public services: up to 82 percent, except some categories. Some categories may get some relief: High-end residential users with consumption more than 500 units per month: 5 per cent reduction in tariff; Large public service customers under HT Public Service category: Tariff reduction up to 18%; And Metro and Monorail: Tariffs were reduced by up to 29 percent.
The huge hike and partial relief comes less than a year after the company achieved an average hike of 11.88 per cent (2023-2024) and 12.19 per cent (2024-2025) in April 2023. Tata Power’s previous tariff hike approval was challenged last year (April 2023) before the Appellate Tribunal for Electricity (APTEL), which ruled in the company’s favor this month (January 2024), paving the way for the latest tariff proposal. Went.
7.50 lakh consumers in Maharashtra
Maharashtra Electricity Regulatory Commission (MERC) has sought public suggestions/objections for the new proposals with a public hearing to be held on February 27 before its final decision in the matter. Tata Power currently serves approximately 7.50 lakh consumers in Mumbai, including 5.5 lakh residential users, who typically consume less than 300 units per month.
Tariff hike before elections 2024
If approved, the proposed drastic amendments in tariffs are expected to add a significant burden on consumers’ bills in the election season from April. Just ahead of the Parliament and Assembly elections in the state this year, the tariff hike move is expected to get support from consumer groups as well as political parties. Apart from this, it is also likely to have a potential impact on consumers of other power distribution companies operating in the commercial capital of the country.
