In a bid to go for a cheaper power supply, the Mumbai Metropolitan Region Development Authority (MMRDA) has decided to shift over from Tata Power for the Monorail and Metro corridors 2A and 7.
Notably, the decision has been taken due to a steep hike in Tata Power’s tariffs, in effect from 1 April 2024. With that said, according to the previous tariff schedule for 2023–24, the rate for the monorail metro corridors was Rs 4.92 per unit, while the new tariff schedule for 2024–25 proposes a rate of Rs 7.37 per unit, showing a hike of Rs 2.45 per unit.
Besides that, Tata Power has also hiked the fixed charges from Rs 375 to Rs 400. In regard to this, MMRDA officials have confirmed that instructions have been given to commence the process of switching over to a different power supplier.
If reports are to be believed, MMRDA will likely switch over to Adani Electricity, which presently charges Rs 6.15 per unit. Presently, the process of switching the power distributor for both modes of public transit is underway. On the other hand, Tata Power officials have said that they have not received any notification regarding the switching of power suppliers by the MMRDA.
“There is hardly any difference in the tariffs between Tata Power and Adani Electricity, as the latter’s tariff includes a Fuel Adjustment Charge (FAC) in addition to its base tariffs. Last year, Tata Power’s tariff was significantly lower, resulting in a refund of Rs 350 crore to consumers over the next three months as per the guidelines of the regulator. It is also notable that, over the past year, there has been minimal movement of consumers from one utility to another. Further, several MMRDA entities that switched over in the past from Tata Power have returned to Tata Power for the better and more affordable service provided by us,” the officials said, as quoted by the Hindustan Times.
Talking about the mentioned metro lines 2A and 7, it operates along a 20-km corridor spanning Andheri West-Dahisar-Gundavali and consumes 12-15 megawatts of electricity every day. On the contrary, the 20-km monorail spanning Chembur-Wadala-Jacob Circle consumes 2-3 megawatts every day.
Notably, the decision comes years after the MMRDA had earlier signed an agreement with Adani Electricity to supply power for Metro 2A and Metro 7 with over 120 million units of power on these lines.
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