Tata Power brings cheer to consumers: Electricity to become more affordable, sustainable

The move is set to make electricity more affordable and sustainable for its eight lakh residential, commercial, and industrial consumers. Representational pic

There is a good news for Tata Power consumers. The power company will implement a new tariff structure approved by the Maharashtra Electricity Regulatory Commission (MERC). This move is set to make electricity more affordable and sustainable for its eight lakh residential, commercial, and industrial consumers.

Following MERC approval of its Multi-Year Tariff (MYT) proposal for Financial Year (FY) 2025-26 to FY 2029-30, Tata Power's tariff in the 0-100 kilowatt-hour (kWh) and 100-300 kWh categories continue to remain low in the suburban areas of Mumbai.

According to a press release, the average tariff of Tata Power has been reduced gradually from the existing Rs 9.17 per Kwh to Rs 6.63 per Kwh in FY 2029-30, signifying 28 per cent reduction in five years. According to the company, the average tariff of Tata Power is much lower than that of other distribution licensees in Maharashtra.

In suburban Mumbai, the lower tariff rates for the 0-100 kWh and 100-300 kWh categories will see an average reduction of 10 per cent in FY 2026 compared to existing rates.

The company in its statement also informed that the green power contribution in overall power purchase is set to increase to about 70 per cent from the present 39 per cent, over five years. The Green Tariff has been reduced from the existing Rs 0.66 per Kwh to Rs 0.25 per Kwh to consumers to avail a green certificate. Also, data centres with 100 per cent green energy will get 10 per cent rebate on wheeling charges.

Demand Side Management Initiative of Tata Power gets a nod from MERC

According to the company, MERC has approved the expenditure to the extent of about Rs 48 crores over the next five years towards various schemes proposed such as energy efficiency and energy audit, EV (electric vehicle) charging, demand response initiatives, and shifting of water pumping load. TATA Power will collaborate with their customers for optimising peak power and ensuring energy efficiency.

For the residential categories, the Time of Day (ToD) benefit has been introduced, which means that residential consumers with a load of below 10 KW can avail ToD benefits with the implementation of Smart Meters, a move to allow customers to consume power during solar hours with additional rebate to optimise their electricity bills.

The company also stated that EV charging has been made more economical. According to the company, applicability of demand charges have been removed for EV charging stations, which will enable them to get electricity at more economical rate. This "Use-and-pay' single part tariff will promote the adoption of EVs.