SoBo consumers can switch from BEST to Tata Power, but not just yet

Residents of South Mumbai have received a major relief after the Supreme Court last week allowed them to switch over to the cheaper Tata Power as an alternative to the Brihanmumbai Electric Supply and Transport (BEST) undertaking. However, residents will have to wait a little longer to avail the services of Tata Power as the latter company has still to expand its transmission network across the island city. Power sector experts said that South Mumbai electricity consumers will have to wait longer as Tata Power does not have its own network in the island city area. “At present, Tata Power has a network in a few areas of South Mumbai from which a few consumers will benefit. Since the SC has not allowed Tata Power to use BEST’s existing network, it will have to create its own network to provide electricity supply to consumers, which is a huge task,” said Ashok Pendse, an expert in the electricity sector. [caption id=“attachment_1378699” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] He explained, “For laying a network, the company will require permissions from various authorities. Apart from that, the road digging for laying cables will be another issue. In all, it will take at least 5-6 months to see the visible difference in how many consumers are switching over to Tata Power.” Currently, the BEST has a monopoly over supply of electricity to South Mumbai. Now, the SC has allowed Tata Power to supply power in South Mumbai, putting an end to BEST’s monopoly. Another expert said that the laying the network across the city will take a couple of years. “Many consumers whose dues are pending, or have disputes about the excess charges, these cases are going on and they are meanwhile seeking to switch over to Tata Power. This is likely to create another issue about recovery. Since, there is no provision to deny power connections on the basis of the above issues, a process will have to be created in recovering the amount and allowing the switchover of consumers smoothly,” the expert added, pointing out that Tata Power will have to increase the number of sub-stations in the island city. With Tata Power coming into the picture in the island city, the electricity rates of the commercial and residential consumers are likely to go down by up to 35 percent. At present, BEST has in all 10 lakh consumers in the island city. Out of these, almost 3 lakh are the commercial consumers who are likely to queue up immediately to switch over to Tata Power in the areas of its existing network in the city. However, Tata Power will have to pass another test of retaining the power distribution license in South Mumbai. Tata Power’s license is set to expire on August 15. In its statement on Thursday, Tata Power welcomed the SC ruling and termed it as a ‘win’ for consumers. “This ruling will foster competition and also pave the way for customers to avail competitive tariffs and better customer service,” the statement said. Meanwhile, the BEST administration has hinted that tariffs for the low-end consumers will have to be increased as high-end consumers are likely to switch over to Tata Power.