Power reprieve may spark a cost surge

MUMBAI: Although Mumbaikars have been granted a reprieve from load-shedding for April, they may have to pay for the relief.

Power companies have arranged for extra supply from external sources to stave off outages, but logistic factors have added to the overheads. The burden will be transferred to the customers.

“We are procuring power from Jammu & Kashmir, Arunachal Pradesh, Haryana, Madhya Pradesh, and Kerala,” said Prasad Menon, managing director, Tata Power Company (TPC). “While home production gives us electricity at rates as low as Rs3 to Rs3.50, power procured from across the country is available between Rs7.50 and Rs8.”

The increase in power cost may not be effected immediately, but the annual revenue requirement (ARR) prepared by the bulk suppliers will factor in the increased cost.

The final tariff will be determined by the Maharashtra Electricity Regulatory Commission. But since the cost incurred towards purchasing power will be officially incorporated, it will inevitably reflect in the tariff structure.

Despite the augmentation of capacity, the utilities said uninterrupted supply cannot be guaranteed. “The peak hour demand is constantly increasing. The onus lies on consumers to conserve energy,” said Lalit Jalan, REL executive director. “