Reliance power hike is a "420 volt" shock to Mumbaikars, says NGO

MUMBAI: The sudden, enormous hike in electricity tariff by Reliance Infrastructure has given a "420 volt" shock to consumers in Mumbai. Twenty-nine lakh families will have to pay upto 45% more.

The company had earlier promised tariffs would, in fact, be reduced over the years. Mumbai pays the highest power tariff in the country.

Reliance Energy on February 19 proposed a renewed increase which will affect families from Bandra to Bhayander, Chunabhatti to Mankhurd and Vikhroli.

"Consumers who utilise upto 100 units currently pay Rs 4.67 per unit and will now have to pay Rs 5.14, an increase of 10%. Householders who commonly use 101-300 units are spending Rs 6.67 per unit. They will be charged Rs 7.73, an increase of 16%. The rate for 301-500 units was earlier Rs 7.75 but will now rise by 45% to a whopping Rs 11.27 per unit. Those who consume over 501 units will pay Rs 13.97 instead of Rs 10.45. This is a rise of 34%," said Nicholas Almeida and Godfrey Pimenta of The Watchdog Foundation.

The NGO has appealed to the Maharashtra state government to "audit the entire functioning of various electricity generating, supply and distribution companies in Mumbai, since the multiple entities in the electricity distribution are booking profits at the cost of consumers". "This is affecting the interest of millions of average households. Why is there no uniform tariff for consumers of Reliance Energy, Tata Power, BEST and MSEDL? Since electricity is an essential commodity, we demand that the state government should immediately rationalise power tariff for consumers in Mumbai," Almeida and Pimenta wrote.

They urged the state to devise a competitive electricity fee structure. "More power suppliers must be given a license to generate and directly provide power to consumers. Electricity supply should not be the monopoly of a chosen few."

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