The Brihanmumbai Electric Supply and Transport (BEST) Undertaking has proposed a rise in electricity tariffs for the next five years. This might impact 10.5 lakh consumers. In contrast, Tata Power and Adani Electricity Mumbai Limited (AEML) have recommended tariff reductions over the same period.
Currently, BEST charges INR 1.87 per unit tariff for below-poverty-line customers consuming up to 100 units. This will rise to INR 2 per unit in 2025–26. The INR 5.46 per unit rate for those using 101 to 300 units will increase to INR 5.55 per unit. Further increases are expected in the coming years.
A slight price cut has been proposed for higher usage groups. In 2025--26, customers using 301 to 500 units will pay INR 9.45 per unit instead of INR 9.46, and those using more than 500 units will pay INR 11.55 per unit, down from INR 11.73.
Adani Electricity and Tata Power have proposed significant tariff cuts. Tata Power's Mumbai Distribution division proposes an average 17.8% tariff reduction for 2025–26. Residential users can expect electricity bill cuts ranging from 7.4% to 14% over five years.
AEML plans to merge the 301 to 500 unit and above 500 unit categories, benefiting high-consumption households with potential savings exceeding INR 5 per unit. About 10 lakh customers may see up to a 30% reduction. AEML also intends to lower its green tariff rate from 66 paise to 30 paise per unit.
BEST serves customers from Cuffe Parade to Sion and Mahim. It is one of Mumbai's oldest power distributors. As part of its multi-year tariff proposal to the Maharashtra Electricity Regulatory Commission (MERC), BEST plans to increase rates for its most economically disadvantaged customers.
As per reports, rising electricity purchase costs are the primary reason for the tariff hike. Over the next five years, these costs are expected to exceed INR 16,475 crore. The Trombay Power Plant, operated by Tata Power, will receive INR 9,483 crore of this amount.
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