BEST allowed to recover Rs 443 crore from consumers

Consumers of BEST should get ready for a tariff shock as the state electricity regulator has allowed the Undertaking to recover Rs 443 crore from its consumers to make good the deficit of its transport business.

BEST which supplies electricity to the island city also handles public transport in the metropolis catering to over 45 lakh commuters.

BEST had filed a petition before the Maharashtra State Electricity Commission (MERC) stating that though its electricity business was generating surplus revenues, its transport business was running at a loss as "its bus tariff is subsidised to ensure that the service is affordable for all sections of society."

It had requested MERC to 'true-up' the deficit of transport business by allowing it to recover the same from its electricity consumers.

BEST had sought truing-up of Rs 901.20 crore for the years FY10 and FY11, though the MERC has approved only Rs 443.58 crore.

"The tariff being charged by BEST are comparable with the tariff being charged in the adjacent areas, which are serviced by RInfra. The consumers are not being charged unduly high tariffs to generate surplus. The tariff for certain consumer categories are high due to cross subsidy between consumer categories," the BEST had submitted in its petition.

While granting partial hike, MERC in its order has directed BEST to reduce deficit of the transport business in future.

"The Commission suggests that BEST should take steps to ensure that the transport business becomes self-sufficient over five years, by reducing its expenses by improving operational efficiencies," MERC Chairman VP Raja said in the order.