Final Tariff for Tata Power & Reliance Energy

A comparison
2 Replies
Update: For new electricity rates 2014 refer to: Electricity Rates Revised: Reliance
Energy Cheaper than Tata Power!
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Finally, Reliance Energys tariff has been announced by MERC as well. And this what it looks like:
There are two new charges: wheeling charge and regulatory asset charge. The first is the charge for the wires
that are used to distribute electricity. The second is for certain assets that Reliance is required to maintain even
if customers migrate to Tata Power.
So how does this compare to the old charges? Here is a quick comparison:
So, there is increase for all customers for the first 300 units consumed and a reduction for higher consumption.
There is also a small increase in the fixed charges as well.
And now to the question that many have asked us: does it make sense to switch from Reliance Energy to Tata
Power? The answer is a qualified Yes and here is how:
First, let us compare the tariff itself:

Clearly, Tata Power is cheaper than Reliance Energy by a large margin up to 500 units. Reliance Energy is
marginally cheaper in the band of over 500 units. But, this also is not the complete picture as Tata Power
charges 9% extra units due to wheeling losses on Reliance Energy network. This means that 100 units
consumed on Reliance Energy need to be compared to 109 units on Tata Power for the correct picture. This is
what we have done for various consumption levels in the table below:

The table clearly shows that the choice of cheapest power depends on the units consumed:
1. Up to roughly 700 units per month Choose Tata Power.
2. Roughly 700 850 units per month Stay with the current provider. The savings are not worth the
switching effort
3. Over 850 units per month. Choose Reliance Energy. So, all households with high consumption who
had switched to Tata Power should switch back to Reliance.
For your own case, you can use the calculator below to calculate your saving. It is updated with the latest price.
If you want to switch, SwitchMe would do it on your behalf saving you time and effort besides money.
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Customer Category
Residential Commercial
Choose basis of comparison
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Calculate Savings!

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1. ASHISH MEHTAMarch 15, 2014 at 1:09 PM
sir in todays news paper relince infra is going to reduce about 19% to 29%,what after .
also from 1st april 2014,TATA POWER IS REVISING AND HIKING WHEELING,REGULAR ASSET
AND SWITCH OVER CHARGES THEN WHAT ACTUAL PICTURE WILL BE AFTER 1ST
APRIL,2014.PLEASE CLARIFY AND REPLY.THANK YOU.
shish,
kindly refer to the link for a detailed analysis of the revised rates and their impact.
http://wp.me/p2W09c-n0
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