Tata Power consumers to get relief, Adani says lowest tariff claim untrue

The Appellate Tribunal for Electricity APTEL has stayed the determination of Tata Power Companyrsquos TPC tariff for the year 202324 thus granting a benefit albeit temporary to the companyrsquos 75 lakh consumers who were worried about an exorbitant hike in their monthly billsIn the interim period the tariff proposed by the company to the Maharashtra Electricity Regulatory Commission MERC on March 31 2020 becomes applicable once again according to TPC This tariff is 2535 per cent lower than the existing one and will be for the benefit of the consumersThe higher tariff gave TPCrsquos close competition mainly Adani Electricity an advantage because in the city the consumers migrate to the utilities that charge less In this case Adanirsquos tariff is less TPCs commitment of imposing the previous lower tariff triggered a strong reaction from Adani Many in Adani termed the stay unprecedented and claimed it impacted the competitive landscape between Mumbai companiesTPC argued that the MERC order in March was actually detrimental to the competitive business because in its petition it had not sought any hike and yet the commission had increased the tariff beyond expectations It was the reason the MERC order was challenged before the tribunalTPC said in a statement on Friday that it will continue to bill consumers as per previous rates that were approved by the MERC It said the stay had vindicated its stand that it can offer cheaper electricity to MumbaikarsSanjay Banga president of TPC transmission and distribution said ldquoThe interim stay is a testament to our dedication to delivering affordable electricity to the people of Mumbai It validates our commitment to providing sustainable power at cheaper rates and our customers will directly reap the benefits of this decision We will ensure that the relief granted by APTEL is passed on to our 75 lakh consumers further reinforcing our steadfast commitment to fairness and affordability in all our operationsrdquoNilesh Kane chief of TPCs Mumbai distribution told midday that the company will submit its further say at a hearing on October 16 APTEL is convinced about the anomalies in the MERC order that we had pointed out The commission will also submit its say if any in the hearing he said expressing confidence that TPC would get a final verdict as wellldquoThe stay represents a pivotal opportunity to strengthen our commitment ensuring the delivery of quality affordable sustainable and reliable power supply that benefits both customers and the wider communityrdquo he addedMeaningless claim AdaniCommenting on the development an Adani Electricity spokesperson said in a statement ldquoSuo moto claims of the lowest tariff are meaningless and designed to misguide the consumers The stated tariff is temporary as it excludes FAC fuel adjustment charge of Rs 1200 crore for the past period The stay is subject to final hearing in OctoberrdquoHe added that the stay of any tariff is against consumer interest as it poses an additional interest burdenThe argument is that since the tariff now applied for TPC is the basis cost determined in March 2020 and the same costs have more than doubled currently the consumer should be paying a hefty FACldquoAdani Electricity tariff is reflective of current costs and includes all past periods under recovery and will not pose any interest burden on consumers and thus shall maintain certainty and competitivenessrdquo said the spokesperson attempting to convince consumers that his companyrsquos supply will come at lower rates than that of TPCOthers to interveneIndustry sources said Adani and the Brihanmumbai Electricity and Transport BEST undertaking may also intervene in the matter and ask that their tariff be stayed as well They said if a similar yardstick was applied then tariffs of all Mumbai companies might be revised downwards