Tata Power, a leading electricity utility in India, has submitted a proposal to the Maharashtra Electricity Regulatory Commission (MERC) to raise electricity rates in the state. The proposal, if approved, would increase rates for residential customers by up to 201%. The proposal is based on the difference between the rates approved by MERC for the 2022-23 and 2023-24 fiscal years and the actual revenue collected by Tata Power. The company says it needs to raise rates to cover its costs and ensure a reliable supply of electricity.
The proposed increases would be the most significant in the state's history. For residential customers who use up to 100 units of electricity per month, the rate would increase from ₹3.15 (about US$0.04) to ₹9.91 (about US$0.13). For customers who use up to 300 units per month, the rate would increase from ₹5.40 (about US$0.07) to ₹9.77 (about US$0.12). And for customers who use up to 500 units per month, the rate would increase from ₹7.10 (about US$0.09) to ₹8.50 (about US$0.11).
The proposal has been met with criticism from consumer groups, who say it would disproportionately burden low-income households. They argue that the company should focus on reducing its costs rather than raising rates. MERC is expected to rule on the proposal in the coming months.