The Hindu Business Line : Tata Power plans differential rates

TATA Power Company has proposed separate tariff for peak and off-peak power used by bulk consumers. This may actually lead to Rs 10-crore fall in its revenues to Rs 3,147 crore. The company has also submitted its power tariff proposal for 2004-05 to the State electricity regulator.

"We are trying to introduce demand side management. We may have to set up a plant to meet peak requirements for two years hence which may lead to tariff hike. If consumers' demand patterns change through rewards from the time-of-day tariff, it may save the future tariff hike," said Mr Mohan Gurunath, Vice-President, Tata Power.

The time-of-day tariff will reward customers who choose to use more power during off-peak hours, for example, at night. But if the customer does not change use patterns, there will be no change in bills, said a senior company official.

The company plans to recover the Rs 10-crore hit by cutting its costs. It would be the first private sector company to implement time-of-day tariff, Mr Gurunath said.

Tata Power has increased maximum demand charges for bulk customers from Rs 170 per kVA to Rs 340 per kVA.

The change, if approved by the Maharashtra Electricity Regulatory Commission, will affect bulk consumers BEST and BSES Ltd, both of which buy power from Tata Power and sell to customers in Mumbai. It would also apply to Railways and other high-tension power consumers. The company has also merged fuel adjustment charges of Rs 34 per kilowatt hour out of a total Rs 121 per kWH into energy rates. Fuel and other cost adjustments will be included in the tariff and so will Government levies and extraordinary expenses.

The company has proposed a reduction in customers' security deposit from 11 per cent to 5.5 per cent. Also, delayed payment charges could be reduced from 2 per cent to 1.5 per cent.