South Mumbai users being overcharged for power? BEST says no, committee yes

Is the Brihanmumbai Electric Supply and Transport (BEST) Undertaking overcharging South Mumbai power consumers by levying excess electricity duty? There are two contradictory opinions on the subject.

According to BEST standing committee member Ravi Raja, the Undertaking is charging electricity duty of 16% on Transport Deficit Loss Recovery (TDLR), even when the Maharashtra Electricity Duty Act doesn't specify the same. "This has resulted in the BEST paying an additional Rs300 crore to the state government, with South Mumbai power consumers being taxed double," explained Raja.

Annually, the BEST collects and pays the state government around Rs2,000 crore by way of electricity duty.

"As per the Maharashtra Electricity Duty Act, the duty has to be charged only on the energy consumed by a user, which includes energy charges, fuel adjustment charges, maximum demand charges and fuel cost adjustment. Nowhere it is mentioned in the Act to charge duty on TDLR," claimed Raja, demanding that amends be made in the billing calculation for larger public benefit.

However, the BEST administration says the opposite. According to its general manager Dr Jagdish Patil, TDLR is part of the tariff that is being levied on power consumers and, therefore, the levy is as per regulations and approved by the governing body — Maharashtra Electricity Regulatory Commission. "The entire electricity duty amount is passed on to the state government and is not meant for the BEST," added Patil.

TDLR will be charged in the electricity bills till March 2016. Thereafter, it is likely to be introduced in the property tax bills raised by the municipal corporation.