Tag Archives: Tata power Vs. reliance energy tariff

Electricity Rates Revised 2014: Reliance Energy Cheaper than Tata Power!

Here is some good news for all Reliance Energy customers! With effect from 1st April 2014, Reliance Energy has reduced its tariffs for all commercial and residential consumers (above 409 units). An increase across residential and commercial rates of Tata Power has also been observed in the revised rates.

This means that from April 2014, Reliance Energy is cheaper than Tata Power, until any further changes in tariffs.  

Let’s see a detailed comparison between the two for a better understanding:

Change in Residential Tariffs:

The table given below provides a comparison between old and new rates of both power providers. An overall reduction in Tata Power’s tariffs and an increase in Reliance Energy’s tariffs can be seen in the revised rates.

revised electricity rates

However, 409 (residential) units onward, Reliance Energy becomes cheaper than Tata Power, as opposed to old rates.

residential tariffs increase

 But since there isn’t a substantial difference between the rates of the two, switching to Reliance Energy will benefit only those with a very high electricity consumption.

Let’s take the example of Mr. Agarwal. A customer of Tata Power, he has an average consumption of 600 units a month. He found that he could save as much as Rs. 900 every month by switching to Reliance Energy! 

Power provider comparison

Change in Commercial Tariffs:

Moving on to commercial tariffs, though Reliance Energy continues to be cheaper, the difference between tariffs of the two have increased substantially. As visible in the tables below, Reliance Energy has made no changes in tariffs, while Tata Power has made a substantial increase in rates across all brackets. This means more savings for commercial consumers on switching to Reliance Energy, than before!

Given below is a comparison between Reliance and Tata’s new and old rates at 20Kw for commercial consumers. Here we see that Tata Power has increased its tariffs by almost 10%;

power provider comparison commercial

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SwitchMe supports Petition to MERC On Consumer Rights

Petition to MERC Against stay on switching

On 22nd August 2012, the Maharashtra Electricity Regulation Commission (MERC) passed a regulation restricting all Reliance Energy customers who consume more than 300 residential units of electricity, from switching to Tata Power, which is cheaper. This was in response to a request from Reliance Energy to stop mass exodus of its customers.

On the other hand, all Tata Power consumers who consume more than 1000 units of energy are allowed to switch to Reliance Energy, which is cheaper for them. Since then, lakhs have been eagerly waiting for the regulations to be removed.

However, the MERC extended this stay indefinitely, on the 30th of October 2013, leaving lakhs bereft of their fundamental right to choose. This is not only a violation of Consumer Rights and freedom to choose but also means losses in thousands of rupees for lakhs of consumers in Mumbai.

Sign this petition and make your voice heard in this fight for consumer rights.Support Mumbai Against 300 Units at: http://300units.org/

Commercial Electricity Consumers: Switch To Reliance To Save!

The new electricity tariff in Mumbai suburbs has opened up an opportunity for offices that have commercial meters.

Many of these consumers had switched from Reliance Energy to Tata Power in the last 2 – 3 years. But now, with the introduction of cross subsidy surcharge, Reliance Energy is marginally cheaper.

This is further compounded by the fact that Tata Power charges extra units to cover transmission and distribution losses on Reliance Energy’s network.

So, how much can you save? Continue reading

Final Tariff for Tata Power & Reliance Energy – A comparison

Update: For new electricity rates 2014 refer to: Electricity Rates Revised: Reliance Energy Cheaper than Tata Power!


Finally, Reliance Energy’s tariff has been announced by MERC as well. And this what it looks like:

Reliance Energy New Tariff 2013There 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:

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Too long a wait to switch your electricity service provider!

troubled consumer

Electricity is one of the most essential commodities in the modern world. In Mumbai, it is one of the most expensive commodities as well. The consumer got a chance to save on his electricity bill through a Supreme Court order a few years ago. Many consumers switched from Reliance Energy to Tata Power and saved a lot of money. However, certain regulations deny consumers the privilege to switch their electricity to economical service providers.

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