Brihanmumbai Electric Supply and Transport (BEST) Undertaking plans to reduce its power purchase costs from an average Rs 8-9 per unit to Rs 5-6 per unit — a reduction of up to 35 per cent — thereby reducing tariff burden on 1.05 million consumers from south and central Mumbai in future.
Maharashtra Electricity Regulatory Commission (MERC) recently issued an order allowing BEST to file a new power procurement plan for approval, which is likely to save huge costs in consumer interest. At present, BEST depends majorly on Tata Power-Generation for its supply. BEST’s power purchase agreement with Tata Power expires in 2024. Though BEST plans to procure power from outside Mumbai, notably, it will not be easy to stop the present arrangement with Tata Power’s embedded generation within the city.