Mumbai pays maximum for power except Kolkata

Written By Unknown on Selasa, 14 Januari 2014 | 22.23

MUMBAI: Mumbaikars pay among the steepest per unit price for electricity in the country, an analysis of the rates of power utilities show.

Of the widely varying costs imposed by the four city utilities, most settle just under Kolkata's expensive Rs 6.28 per unit price, but one outstrips even that by a margin of over a rupee at Rs 7.68 (see box).

Consumer activists and power analysts blame it on costly power purchase in the absence of long-term and cheaper agreements , absence of reasonable private power generation and a skewed consumer mix that has increased the burden of cross-subsidy on some following populist decisions to subsidize others. Surprisingly, Maharashtra has the lowest power deficit after Gujarat.

But there's a ray of hope: power generation is increasing with private participation and it might end the disparity in tariffs if liberalization goes on. A unit of power from central plants, such as NTPC, costs Rs 2.60. It is Rs 3.50 from private plants like Tata Mundra, Adani and Indiabulls but Rs 4.11 from Mahagenco plants.

"If BEST and Tata look for cheaper power generation outside the state instead of depending on the state, tariffs may drop remarkably," said Ashok Pendse, a power expert. Cheaper power at competitive rates, which is slowly coming for the (most expensive) state utility and Reliance, would improve the rates.

Other than the skewed consumer mix, transport cost of coal, lack of cheaper hydro and wind power, non-availability of gas for Dabhol plant, huge cost of renovation and creation of power plants and transmission networks, and delay in MERC orders have added to the bill burden. So has the building of five new plants —two units each at Parali and Paras and one at Khaparkheda.

Long-term competitive bidding, more power from the central sector, more hydro power, abundant coal and old working plants have meant a lesser burden on consumers in some states and cities, but quite a few like MP and TN still face load-shedding.

In Reliance areas, other than the extremely skewed consumer mix, regulatory assets charges, delay in MERC judgements in tariff approvals and lack of long-term power purchase agreements till recently resulted in high charges. For BEST, the major reason for high billing is of recovering a transport loss of about Rs 1.22 per unit from power consumers. "We hope to recover this transport deficit over the next three years and then the BEST's tariff will be lesser than other utilities," said BEST general manager O P Gupta. For Tata, the high wheeling charges due to lack of its own wire network is the major bugbear. "Over a period, when Tata Power converts its Unit 6, presently run on oil and gas, into a coal plant, the cost of power will red u c e, " s a i d Pendse.


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