Mumbai: More than 10.8 lakh electricity consumers in Mumbai’s island city are set to pay higher power bills this month, with the Brihanmumbai Electric Supply & Transport (BEST) undertaking levying a Fuel Adjustment Charge (FAC) that will increase tariffs by up to 95 paise per unit for residential users. According to BEST sources, the Maharashtra Electricity Regulatory Commission (MERC) has approved the FAC, resulting in an estimated rise of around 8% in electricity bills for many consumers across the utility’s distribution area stretching from Colaba and Cuffe Parade to Sion and Mahim.Under the revised charges, residential consumers using up to 100 units a month will pay an additional 30 paise per unit. Those consuming between 101 and 300 units will be charged 55 paise extra per unit, while consumers in the 301-500 units bracket will see an increase of 90 paise per unit. High-end residential users consuming more than 500 units a month will pay 95 paise extra per unit.The impact on monthly bills is expected to be significant for some households. For instance, consumers in the 101-300 units category could see their bills rise by around Rs 165, while those in the 301-500 units bracket may pay nearly Rs 450 more this month.The hike is not limited to residential consumers. High-tension (HT) commercial users, including shops, establishments and offices, will also face an FAC of 55 paise per unit. Industrial consumers under the HT category will similarly be charged an additional 55 paise per unit.Consumers served by MSEDCL, which serves Mulund, Bhandup, Thane and the rest of the state, will also witness a rise in power bills, with the state utility levying an FAC averaging about 30 paise per unit. Utility officials attributed the additional levy to higher power procurement costs incurred during the peak summer months. With temperatures soaring and electricity demand climbing sharply, BEST was forced to purchase electricity from the open market and power exchanges at substantially higher rates to ensure uninterrupted supply and prevent outages across its distribution network.As for 8 lakh consumers served by Tata Power in Mumbai, the FAC levied was an average 49 paise per unit in July and which is reduced to 22 paise per unit — thereby resulting in power bills dropping this month, an official from Tata Power said. An official from Adani Electricity said that there is no change in power tariff and no impact of FAC on bills this monthOfficials clarified that the FAC, also known as a power purchase adjustment charge, is a MERC-approved mechanism that enables distribution companies to recover fluctuations in power purchase costs. The charge is reviewed every month and may vary depending on market conditions. In some months, the FAC can be negligible or even negative, with surplus collections adjusted against future recoveries.
