Tata Power Saves ₹67cr In Power Purchase Costs | Mumbai News – Times of India

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MUMBAI: Tata Power on Monday announced it has saved Rs 67 crore in power purchase costs over the past two months, which is likely to be passed on to 7.5 lakh consumers in Mumbai tentatively from July. The savings would be treated as a negative FAC (Fuel Adjustment Charge), a component in the monthly bill which varies depending on fuel (coal) prices. The refund would amount to about 50 paise per unit. The announcement comes close on the heels of a tariff hike by Tata Power, which prompted a few hundred subscribers to migrate to competitors. Until recently, Tata Power had the cheapest tariffs.
Tata Power chief (Mumbai distribution) Nilesh Kane on Monday said there were “anomalies” in the tariff hike from April 1, and they have been challenged before the APTEL (appellate tribunal for electricity). “Our average cost of supply is very low and still our tariff is higher. We found a lot of anomalies in the order in determining the tariff. For 2024-25, the calculation needs to be reworked and the same has been intimated to both APTEL and the Maharashtra Electricity Regulatory Commission (MERC),” he said. He said the APTEL final order was expected in July.
“We have also made representation to MERC to allow us to return the negative FAC to consumers,” he said, adding that if money was refunded, consumers can expect to gain up to 50 paise per unit (with effect from April 1) in monthly electricity bills. Those affected by tariff hikes also included commercial and industrial consumers whom Tata Power wants to retain.
Tata Power president (Transmission & Distribution) Sanjay Banga said coal prices have started coming down and this will reduce the burden of FAC on consumers. “Also, any addition in generation will be on the renewable side and this could further bring down tariffs,” he said.

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