Tata Power Consumers Brace for 24% Tariff Hike: Get Ready to Pay Extra

The approved increase will primarily affect customers with electricity consumption up to 100 units per month.

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Special Correspondent
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Residential customers of Tata Power Company are in for a shock as the company has been approved to increase electricity rates, effective from April 1. This move comes after the State Electricity Regulatory Commission on Thursday approved an average hike of up to 24 percent, impacting customers across different consumption brackets.

The approved increase will primarily affect customers with electricity consumption up to 100 units per month. However, the rate hike will be even steeper for customers consuming between 101 to 500 units.

Initially, Tata Power had proposed a rate hike for residential customers, which faced strong opposition. After revising their proposal, the company received approval from the Commission. Notably, Tata Power hadn’t implemented the hike approved for this category in the last two years, leading to the impending increase in rates.

Following the approval, the tariff for consumption between 0 to 100 units will rise to 5.33, while for consumption exceeding 501 units, it will soar to 15.71.

The surge in fuel and other expenses, along with the Commission’s decision regarding the proportion of green energy in total electricity purchases, has necessitated this price hike. Factors such as infrastructure costs and electricity procurement contribute to the increased rates.

With Tata Power’s residential rates poised to surpass those of other electricity providers, there are indications that some consumers may explore alternative options. Additionally, the approval of this hike follows the Commission’s failure to implement the tariff hike approved in 2023-24 to address revenue shortfalls.

As Tata Power moves forward with the rate increase, customers brace themselves for higher electricity bills, signaling a potential shift in the dynamics of the energy market as consumers seek competitive pricing and alternative providers.

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