The proposed hike increases the price for consumers using less than 100 units to ₹4.96 per kWh from the earlier price of ₹1.65. The proposed price rises to ₹6.97 from ₹4.2 per kWh for 101–300 units. And, for 301–500, from ₹7.65 to ₹8.4.
On the flipside, the company has proposed a reduction for 500 and above units' consumers to ₹7.94 from the current ₹8.35 per kWh.
TATA POWER | 2023-24 | 2024-25 |
CUSTOMER CATEGORY | EXISTING | PROPOSED |
| In Rs/kWh | In Rs/kWh |
RESIDENTIAL BPL | 1 | 1.89 |
0-100 | 1.65 | 4.96 |
101-300 | 4.2 | 6.97 |
301-500 | 7.65 | 8.4 |
500 & ABOVE | 8.35 | 7.94 |
The company has termed this proposed hike as an attempt to 'rationalise' prices, as they have remained unchanged since before the COVID-19 pandemic began. However, other DISCOMs had availed of a MERC-approved hike last year, but Tata Power contested it, as it made the DISCOM uncompetitive with an average hike of 11.9% for FY23–24 and 12.2% for FY24–25.
A
Tata Power spokesperson told
CNBC-TV18, "Rationalisation of prices has become necessary as prices have remained unchanged and the difference between the lowest slab and the highest one (above 500 units) is over ₹7, wherein the high-end consumers have been subsidising the lower-end ones. The idea with this proposition is to bring the difference down. The proposed prices will bring the difference down to
₹3 (lowest slab at
₹4.96 and the highest at
₹7.94).
However, prices for the residential BPL (below the poverty line) category have also been proposed to hike from ₹1 to ₹1.89. This proposed hike may impact the slum dwellers of the city.
Additionally, this proposal asks for a 12% average tariff hike, citing an increased average revenue requirement of ₹0.88/kWh.
(Edited by : Ajay Vaishnav)
First Published: Jan 30, 2024 5:11 PM IST