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Tata Power’s distribution arm approaches MERC for tariff revision

04 Feb 2013 Evaluate

Tata Power's distribution arm has approached the Maharashtra Electricity Regulatory Commission (MERC) to hike its present average tariff of Rs 5.97 per unit to Rs 6.75 per unit for 2013-14, Rs 7.39 per unit for 2014-15 and Rs 8.05 per unit for 2015-16 at a rate of 10.46% annually (CAGR).

The revision in tariffs, which is subject to MERC review and approval, are called for on account of significant rise in fuel prices that have impacted cost incurred on developing Tata Power’s own last mile Low Tension (LT) network in Mumbai combined with continued incurrence of wheeling charges imposed on account of using a third party network and unrecovered costs over the past three years as the Company has not revised its tariffs past 3 years.

Tata Power is India's largest integrated private sector power utility with an installed generation capacity of 5297 MW and a presence in all the segments of the power sector viz. generation (thermal, hydro, solar and wind), transmission, distribution and trading.

Apart from it, other distribution utilities in Greater Mumbai including Reliance Infrastructure (RInfra), BrihanMumbai Electric Supply and Transport (BEST) and MahaVitaran too are soon expected to approach MERC for tariff revision.

Tata Power Share Price

427.45 0.00 (0.00%)
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