BEST’s wait for cheaper power for SoBo gets longer

Mumbai: The BEST's plans to get cheaper power for south Mumbai consumers through the competitive bidding process have not only proved futile, they have prolonged by one year.

Reason being the Maharashtra Electricity Regulatory Commission (MERC) has cancelled one of the tenders issued by BEST for purchase of 250 MW power required during the 9am to 7pm slot.

MERC has directed inviting fresh tenders. Consumer representative of MERC, Dr Ashok Pendse said that BEST will now continue to purchase power from Tata Power and we will fight for cheaper rates.

The BEST has been purchasing power from Tata Power for more than 100 years now and the average rate up to March 31 this year is `4 per unit. BEST had decided to purchase power through open bidding and accordingly invited tenders for a few time slots. Tata Power challenged the tender conditions and BEST’s decision on various technical grounds, and filed separate petitions for tenders before the MERC.

MERC allowed the contentions of Tata Power and cancelled tenders for purchase of 250 MW power; it has already cancelled tenders for purchase of 300 MW and 200 MW power.

The Mahavitaran Company was also interested in supplying power to Mumbai at cheaper rates than Tata Power.

Now the bidding process will be carried out afresh, keeping in mind the MERC’s directions which will take time. So, Tata Power will continue to supply power for one more year to the BEST.

Dr Pendse said, “MERC will finalise the tariff applicable from April 1 very soon.  So, we will demand fixing competitive rates and cheaper power for south Mumbai consumers.”