South Mumbai wants Tata to sell cheaper power to BEST

Power consumers in the island city have petitioned the state electricity watchdog to direct civic supplier BEST to buy electricity from Tata Power Company at Rs 3.50 per unit instead of the current Rs 4.13 if the agreement between the generator and supplier is to be extended for another year.

The Maharashtra Electricity Regulatory Commission (MERC) on Thursday heard the petition from the Brihanmumbai Electric Supply and Transport (BEST) to extend its power purchase agreement (PPA) with TPC till March 2019. It otherwise ends in March this year.

At the hearing at the World Trade Centre, BEST asked for an extension of its existing PPA with TPC, which has been wheeling power to BEST at a cost of Rs 4.13 per unit for years. However, in a break from a 91-year-old relationship, the civic supplier decided to go for competitive bidding to buy power starting the fiscal 2018-19.

The daily order uploaded by MERC stated that TPC and BEST have agreed on extending the existing PPA for one year without any special conditions. The extension has been sought by BEST as they are unable to finalise a new distributor on time.

Dr Ashok Pendse, a power expert who attended the hearing, said: "Earlier TPC stated that it shall be able to provide power at a price of Rs 3.84 per unit. If they can bring it down from the original price, BEST should negotiate the tariff with TPC at least till Rs 3.50 per unit."

The undertaking expects to save around Rs 700 crore a year with the move. Its power purchase bills run up to around Rs 3,200 crore a year. Once a new power supplier comes in, tariff might go down by 45 paisa to 60 paisa per unit.

POWER DYNAMICS 

• BEST supplies power to the island city between Colaba and Sion/Mahim to 10 lakh consumers.
   
• Consumers moved MERC; they want BEST to buy power at Rs 3.5 a unit, not Rs 4.13 a unit