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:

Revision 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

Revised 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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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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New Tata Power Tariff

MERC has ordered a new set of prices for the next 3 years for Tata Power in Mumbai suburbs. These prices are effective from July 1st ie Today. The impact of these changes is not completely clear at the moment as some of the line items and the fine print of the order is still being understood. Even Tata Power has not updated their site to show the new prices. Thus, what you see below is the first analysis of the impact of the new Tata Prices.

Tata Power Tariff 2013

Tata Power Tariff 2013

First, the fixed charges (FC) have been increased. This is a marginal increase and does not make much of an impact on the monthly bill. Do note that these are the prices for a single phase meter and Rs 100 is payable for a 3 phase meter irrespective of the units consumed. Most of the residential meters are single phase and hence we have shown only those prices here.

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