The Brihanmumbai Electric Supply and Transport (BEST) Undertaking has proposed higher power tariffs for the next five years, affecting 10.50 lakh consumers in Mumbai’s island city. The proposed tariff hike is due to rising power purchase costs, with BEST expecting to pay over ₹16,475 crore to Tata Power’s Trombay Power Plant over the next five years. The proposed tariffs for BEST’s most economically vulnerable consumers, those using 0-100 units and 101-300 units, will increase from ₹1.87 and ₹5.46 per unit to ₹2 and ₹5.55 per unit, respectively, in 2025-26.
In contrast, Adani Electricity Mumbai Limited (AEML) and Tata Power have proposed year-on-year reductions in power tariffs for the same period. AEML has suggested merging the 301-500 units and >500 units categories, allowing high-consumption households to benefit from a reduction of more than ₹5 per unit. This could benefit approximately 10 lakh consumers, leading to a potential 30% tariff reduction for higher consumption households. AEML has also proposed halving its Green Tariff rates from 66 paise per unit to 30 paise per unit, further incentivizing sustainable energy use.
Tata Power’s Mumbai Distribution division has also submitted a consumer-friendly proposal, promising an average tariff reduction of 17.8% for 2025-26. For residential users, this translates to electricity bill reductions ranging from 7.4% to 14% over the next five years. The proposed tariffs by Adani Electricity and Tata Power are aimed at making energy more affordable, sustainable, and inclusive, while BEST’s proposal is designed to balance revenue generation while competing with private players. The proposed tariffs will be reviewed by the Maharashtra Electricity Regulatory Commission (MERC) before being finalized.