BEST revised power tariff eyewash

The Brihanmumbai Electricity Supply and Transport (BEST) has revised its tariff plan by removing Transport Division Loss Recovery (TDLR) surcharge from electricity bills on the island city, but activists have termed it as an ‘eyewash’, as the case regarding this is pending in the Supreme Court.

As per mandatory process for the electricity companies, the BEST has recently revised its tariff plan reducing TDLR and energy charges. However, this will not benefit the consumers till the SC gives its verdict in the case, said activists.

The BEST, which has been facing losses of about Rs 3,000 crore in transport sector had moved to the Appellate Tribunal for Electricity (APTEL) demanding to levy surcharge i.e. TDLR on the electricity consumers.

“The APTEL had remarked that the BEST cannot recover its transport losses from the electricity consumers against which it went into the SC. The apex court directed that the MERC should determine tariff with TDLR however, it cannot be implemented without concurrent of the Supreme Court. This will not allow the BEST to make any changes in its current tariff plan until the permission from the supreme court is given,” consumer activist Ashok Pendse said.

For providing some relief to the consumers, the BEST needs to withdraw its petition from the Supreme Court, Mr Pendse added. “The revised power tariff is a complete eye wash. Nothing is going to change for the consumers until the apex court’s verdict and we cannot say when it will come,” he said. He also pointed out that the BEST needs to think about recovering its losses in different way.

The BEST purchases its power from Tata power’s Chembur plant at a high cost, as pollution norms in the city are very strict. This forces the company to charge more from the consumers.

“Its power purchase agreement is going to end in 2017 and hence the BEST should think of purchasing inexpensive power from other sources. Also, it needs to look into how the company can recover its losses,” Mr Pendse said.

As per the proposal for the year 2016-17, the BEST has proposed for residential consumers, maximum 33 per cent hike in fixed charges, maximum 10 per cent reduction in energy charges and zero TDLR.

For industrial consumers, 25 per cent hike in fixed charges, reduction of energy charges by 12.6 per cent and zero TDLR. For commercial energy charges are reduced to 18.7 per cent.