Tata Power saves Rs 67 crore in power purchase costs

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.