Now Reading: MERC Approves FAC Hike, BEST Mumbai Bills Up 8%
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MERC Approves FAC Hike, BEST Mumbai Bills Up 8%
More than 10.8 lakh BEST consumers in Mumbai’s island city will face up to 95 paise per unit increase in electricity tariffs this month, after MERC approved the Fuel Adjustment Charge (FAC).…
The Story in Brief
More than 10.8 lakh BEST consumers in Mumbai’s island city will face up to 95 paise per unit increase in electricity tariffs this month, after MERC approved the Fuel Adjustment Charge (FAC). Residential bills are expected to rise by about 8%, with the highest impact on those using over 500 units a month. Commercial and industrial users under the high-tension category will pay an extra 55 paise per unit. The hike is attributed to higher power procurement costs during peak summer.
The FAC is a MERC-approved mechanism that lets utilities recover fluctuating purchase costs and is revised monthly. Separately, MSEDCL consumers will see an average 30 paise per unit rise, while Tata Power’s FAC has dropped to 22 paise this month. Adani Electricity has levied no FAC for July. Officials say the charge can be negligible or negative in cooler months when procurement costs fall.
The Indian Opinion
Typical outrage over power bills often ignores that the Fuel Adjustment Charge (FAC) is a monthly pass-through, not a permanent tax. This month Tata Power’s FAC actually dropped, while Adani levied none at all. The real test will come when summer demand eases: will BEST’s FAC fall back as sharply as it rose, or will consumers be left paying for permanent inefficiencies?
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
