Tata Power Co (TPC), in its annual revenue requirement for ’04-05 and tariff proposal, has not proposed any tariff hike for its over 20,000 customers in Greater Mumbai  (prominently the high tension consumers, bulk consumers and railways).  However, TPC has proposed tariff rationalisation despite the reduction of Rs 10 crore in its  revenue thereby resulting in a deficit of Rs four crore, from a surplus of Rs two crore in its  clear profit. TPC has projected a clear profit of Rs 317 crore at the proposed tariff against the  reasonable return of Rs 321 crore. 

As reported by FE, TPC has introduced a time-of-day tariff and cut in its night tariff during  10pm and 6am by 75 paise compared to the day tariff. TPC, which had missed its deadline of  February 15, ultimately filed its ARR and tariff proposal for 2004-05 on Friday at the MERC. Mohan Gurunath, V-P, TPC, told FE that there has been no hike in the weighted average tariff and  the company has favoured the demand side management. Further, the company would launch the  franchise tariff as per the provisions of the Electricity Act 2003 wherein TPC can supply power  at high tension point and thereafter appoint the franchise for its administration. The franchise  will be paid small commission for this purpose. 

“TPC does not propose making up the gap of Rs four crore. Depending on the actual recovery during  the year through the implementation of the tariff structure and the control on the expenditure,  TPC will approach the commission for necessary changes in tariff structure,” Mr Gurunath said.  TPC saidthat REL has overestimated its demand for power from subsidised consumers, underestimated  the sales growth from industrial and commercial consumers, underestimated its generation from  Dahanu thermal power station, overestimated its purchase from TPC and overestimated the fuel  adjustment cost from TPC.