Reliance Infrastructure receive MERC approval to raise power tariff

Reliance Infrastructure, controlled by billionaire Anil Ambani, on June 5, won regulatory clearance to increase power tariff by as much as 10.22 per cent. The move will assist the utility to charge more from its 2.6 million users in Mumbai. Reliance Infrastructure (Rel Infra) had urged the Maharashtra Electricity Regulatory Commission (MERC) for a 4.19 per cent increase in its annual revenue requirement (ARR). It was instead approved an increase of 10 per cent. The Ambani company will required to purchase power from the spot market. MERC was distributing power equitably between BEST and Rel Infra and the financial burden was also equitably shared by the organisations till last financial year, in the absence of a formal power purchase agreement between TPC and the distribution utilities.