Tata Power granted permission from electricity regulator to raise tariffs

Mumbai: Tata Power has received permission from the electricity regulator to raise tariffs, in order to receive compensation to make up for losses incurred at its Mundra plant of Gujarat. The Central Electricity Regulatory Commission said, “Tata Power should be reimbursed 3.3 billion rupees for the fiscal year 2013, that ended in March”. “It can also raise tariffs by 0.524 rupees per unit for the current fiscal year for electricity generated from Mundra,” said the regulator in an order dated February 21.

India's power sector has struggled with domestic coal shortages and has become increasingly reliant on costlier imports to meet the country's rapidly growing energy needs. "The company finds the order balanced perhaps keeping in view the beneficiaries and consumer interests," allegedly stated Tata Power. (Reuters)