The revised tariff will come into effect from September 1. MERC has approved BEST's multi-year tariff plan till FY16 and allowed an average hike of 8.90 percent, 8.61 percent and 8.42 percent in FY14, FY15 and FY16, respectively.
    
Correspondingly, the average tariff for the three years has been increased to Rs 9.97 per unit, Rs 10.93 and Rs 11.94, respectively. BEST had proposed a 20 per cent hike for FY14 and 7 percent each for FY15 and FY16.
    
"To avoid any kind of tariff shock to consumers, the Commission approved the tariff increase," MERC said in its order on Wednesday. Under the revised plan, tariff for residential consumers in the category of up to 100 units has been revised to Rs 3, for upto 300 units to Rs 5.53 and for upto 500 units to Rs 7.79. For customers consuming above 500 units, tariff has been revised to Rs 9.85 per unit.
    
Revised tariff also includes charges towards cross subsidizing BEST's transport business, MERC said.
    
While approving the plan MERC said "the Supreme Court has ruled that as per the EA 2003, BEST's supply division can subsidize the transport division since it is a local authority that has been engaged in the business of electricity distribution before the commencement of the EA 2003. Thus, the transport deficit forms the major part of the total revenue gap to be recovered from consumers".

For FY15, tariff for consumers in the category of upto 100 units has been revised to Rs 3.20, for upto 300 units to Rs 6.38 and for upto 500 units to Rs 8.94. For those consuming above 500 units, tariff has been revised to Rs 11.4 per unit.
    
For FY16, MERC has approved tariff of Rs 3.55 per unit for upto 100 units category consumers, Rs 7.43 for those consuming upto 300 units and Rs 10.24 for those consuming upto 500 units. For residential customers consuming power above 500 units, tariff has been revised to Rs 12.65 per unit.

(Agencies)

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