While multiplexes have been spared a major tariff shock, malls and shopping complexes will have to pay through their nose for higher consumption.
Consumption of over 150 kw will invite higher tariff
While multiplexes have been spared a major tariff shock, malls and shopping complexes will have to pay through their nose for higher consumption.
Malls and shopping complexes with consumption above 150 kw have been categorised as high tension (HT) commercial consumers with a higher tariff. However, small establishments within these malls will be charged under the low tension (LT) category.
The LT category is further divided into three sections - consumers with monthly consumption up to 20kw, 20kw to 50kw and those consuming more than 50kw.
Brihanmumbai Electric Supply and Transport (BEST) has proposed almost a 47 % hike for HT commercial consumers whereas the charges for LT commercial consumers have gone up by an average of 3% to 22% depending on their consumption. Reliance Energy Limited (REL), on the other hand, has proposed an increase of an average of 17%, 12% and 26% for its LT commercial consumers.
“The increased demand for electricity is largely related to the increase in number of malls and shopping complexes. There has been a steep rise in demand by almost 10 % as compared to last year,” said SA Puranik, additional general manager of BEST undertaking.
On an average a mall consumes 8 million units of electricity. It may be recalled that during the tariff determination last year, when Mumbai had witnessed power shortage of 400mw for the first time, it was decided to charge these consumers maximum tariff as they were considered to be depriving others of the limited power.
“Malls were considered ‘non-critical service providers’ indulging in unwarranted commercial consumption. In order to control their high consumption needs, the Maharashtra Electricity Regulatory Commission (MERC) had asked the utilities to charge them 80% higher tariff as a compulsive measure to reduce consumption,” said an industry source.
This hiked tariff was challenged by two such consumers - Spencers Retail Limited and Inorbit Mall (India) Private Limited - in the Appellate Tribunal for Electricity (ATE) in New Delhi. While the former challenged MSEDCL’s tariff structure, the latter appealed against tariff imposed by Reliance Energy Limited. Hearing the pleas of these consumers, ATE set aside the earlier MERC order of hiked tariff for being ‘discriminatory’ and asked the latter to pass a fresh one within a period of six months.
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