BEST Electricity Customers to Receive Tariff Discounts Starting April 1
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Synopsis
Starting April 1, about 10.5 lakh consumers of BEST in Mumbai will enjoy reduced electricity tariffs. The Maharashtra Electricity Regulatory Commission has approved significant tariff reductions spanning several years.
Key Takeaways
- 10.5 lakh consumers to benefit from tariff reductions.
- MERC approves tariff cuts of up to 9.82%.
- Promotion of electric vehicles with new tariffs.
- Green Power Tariff introduced for renewable energy.
- Time of Day Tariff offers rebates during solar hours.
Mumbai, March 29 (NationPress) Approximately 10.5 lakh electricity consumers of the Brihanmumbai Electric Supply and Transport Undertaking (BEST), a licensed electricity distributor in the island city of Mumbai, will benefit from a reduction in power tariffs starting April 1.
The Maharashtra Electricity Regulatory Commission (MERC) released an order late Friday night concerning BEST’s tariff application, which has been approved for a tariff reduction of 9.82 percent for 2025-26, 4.16 percent for 2026-27, 0.39 percent for 2027-28, 2.52 percent for 2028-29, and 7.84 percent for 2029-30.
The MERC confirmed a net surplus of Rs 297.30 crore, which is higher than BEST's claimed net surplus of Rs 71.50 crore, after adjustments for FY 2022-23 through FY 2023-24, along with provisional adjustments for FY 2024-25. The MERC aims to balance the interests of consumers with the legitimate costs of the Distribution Licensee.
According to the MERC, the primary factors contributing to the overall tariff reductions include power procurement from TPC-G’s thermal units at their technical minimum, the cessation of power purchases from TPC-G’s Unit 5 after FY 2029-30, procurement of additional power from Short-Term Renewable Energy during the 5th Control Period (2029-30), and a decrease in transmission, state load dispatch center, and state transmission utility charges based on the annual revenue requirements approved in respective petitions.
To further promote electric vehicles (EVs) in the state, the MERC has sanctioned a single-part tariff for EV charging stations at both high tension (HT) and low tension (LT) voltage levels, which will be linked to the average retail cost of supply approved for the respective years of the 5th control period. The tariff for HT EV charging has been set at Rs 8.24/kVAh, while for LT EV charging, it will be Rs 8.07/kVAh in 2025-26.
In alignment with previous orders and to support mass transit and bulk consumers, Wheeling Charges will not apply to Railways, Metro, Monorail, and other consumers utilizing supply at the EHV (110/132 kV) voltage level.
Moreover, the MERC has decided to maintain a levy of Rs 0.25/kWh as a Green Power Tariff for consumers opting to meet their energy needs through renewable sources. This Green Power Tariff will be in addition to the tariff approved in the order.
All consumers (including Extra High Voltage, High Voltage, and Low Voltage) will be eligible to select renewable power by paying the Green Power Tariff. The Distribution Licensee is required to facilitate requests for the Green Power Tariff through its web portal, mobile app, or any other digital means for consumer convenience. The green attribute of the energy consumed by any consumer who pays a green tariff will remain with that consumer.
Such energy will not count towards the Distribution Licensee's Renewable Purchase Obligation (RPO) compliance. The MERC has also introduced a revised Time of Day (ToD) Tariff for BEST consumers, which offers a rebate during solar hours.
The ToD Rebate of Rs 0.50/kWh is also available for consumers in the LT I - Residential category, provided they have smart meters installed.
