Power tariffs to drop by 3 per cent as BEST seals five-year deal with Tata power

On Wednesday, Brihanmumbai Electric Supply and Transport (BEST) undertaking, which supplies electricity to 10.5 lakh consumers in Mumbai, sealed a five-year deal with Tata Power to procure cheaper, reliable power. This will ensure Mumbaikars’ tariffs will drop by at least 3 per cent from April 1. 

The existing power tie-up of 677 MW between BEST and Tata Power is scheduled to expire on March 31. However, the power purchase agreement will be extended from April 1, 2019 to March 31, 2024.

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Tata Power said in a statement that that move would ensure cheaper power for Mumbai consumers with the added advantage of hydro peaking power at rates which are the lowest in the country. The statement further said that this will also ensure continuity of reliable power supply to Mumbai consumers from Tata Power’s thermal and hydro stations in view of the transmission constraints.

The 1,580 MW Trombay plant started operating in 1956 and currently has five operational units, including Units 5 and 6 each of 500 MW capacity and Units 4, 6 and 8 with of 150 MW, 180 MW and 250 MW, respectively.