Uniform power tariff in Mumbai being mulled

The middle class in the suburbs ends up paying stiffer power bills than that the rich consumers in the island city. To address this anomaly, the state government is contemplating uniformity in power tariff across Mumbai. It is examining the option of cross subsidy to make the move feasible.

“Citizens of Mumbai are paying at three different rates. This is discriminatory,’’ said energy minister Ajit Pawar, adding Delhi already has brought in uniformity in the tariff structure.

Explaining the difference in rates, he said the three companies supplying power get them at variable rates. “Since the rate at which RInfra purchases power is higher, the rate it charges in the suburbs is also higher. We have to follow the MERC ruling on tariff rates and cannot do much about the higher rates,” he said.

Tata Power, which supplies power to the island city, procures it at a much cheaper rate, he added.

“To bring in uniformity, the government will have to initiate the option of cross subsidy,” he said, adding the law and judiciary department have been asked to look into the possibility of amending relevant laws.

He said the government had requested Tata Power to start distributing electricity in the slums and lower middle class areas so that people can have the option of cheaper power.

Pawar also hinted at further hike in the power tariff in the state. “The hike made today is 22 paise per unit but, in future, consumers should prepare for a higher tariff,’’ he said.

He cited the increase in the prices of petrol, diesel, coal, salary of employees after the implementation of the sixth pay commission and rising expenditure of infrastructure as the factors influencing tariff hike.