Will you be paying uniform electric bills?

Experts say the Uniform Tariff Rates for electricity will not be easy to implement

With Deputy Chief Minister and Power Minister Ajit Pawar giving indications that the Maharashtra government will soon implement Uniform Tariff Rates (UTR) for electricity in Mumbai, it's a win-win situation for over 1 crore-power consumers.

However, the question that arises is whether it would be feasible to do so across Mumbai when there are four different power distribution companies ufffd TATA, Reliance Infra, BEST and MSEDCL.

Power expert Ashok Pendse said, "While ensuring uniform tariff, some companies will have to suffer losses. The government will first have to give subsidies to those companies."

There have been instances in the past when political parties like the Shiv Sena and BJP carried out protest marches against the hike in power tariff by companies, after which demands were made in the Assembly to apply the uniform tariff model in Mumbai.

In Mumbai there are four power distribution companies. Brihanmumbai Electricity Supply and Transport (BEST) supplies power to the island city, Reliance Infra supplies power to western suburbs (Bandra to Bhayander), Maharashtra State Electricity Distribution Corporation Limited (MSEDCL) supplies power to the eastern suburbs, Thane and Navi Mumbai and Tata Power Company (TPC) supplies power to RInfra and BEST.

Pendse added that RInfra charges higher tariff rates from consumers. Due to a shortage of 700 megawatts (MW) it purchases power from TPC and recovers the amount from consumers.

Officials from MSEDCL said the implementation will not happen soon as there are technical difficulties involved.
According to Pendse there are pros and cons to the Uniform Tariff as well. "The provision in the Electricity Act (2003) gives consumers the right to select the supplier of their choice."

"If UTR comes into practice in Mumbai, consumers will have no choice," he said.

Speaking to MiD DAY, an official from RInfra said, "Around 30 lakh RInfra consumers will be benefited from this move. If Delhi can apply UTR then why not Mumbai?"