Mumbai: BEST earnings hit after TDLR removal

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The BEST had partially removed TDLR surcharge on electricity supply consumers in October for some cycles. In November, the removal of surcharge was completely applied to all power bills.

“Out of the 400 meter readers at present in BEST, the undertaking had divided its supply consumers in 21 cycles for the period of October. Out of these, four cycles (high-voltage end consumers) were charged with TDLRs in their power bills while the rest were exempted. In November, as consumers of all the cycles were not levied with the surcharge, the earnings witnessed a decline,” said a BEST official.

The utility has long managed the losses incurred by its transport division through TDLR from supply consumers. Officials confirmed the earnings will fall further in the coming months as the overall tariff rates has witnessed a decline.

“Running one part of the utility based on surcharge made by another arm of its wing was never appreciated. It is
high time BEST gets support from the government and the BMC to sustain business. With no increase in fares or help from any side, the transport division cannot survive for long,” said Kedar Hombalkar, BEST committee member.

Anticipating losses for the undertaking after removal of TDLR, the BEST had suggested measures including cess on property tax, increasing the base consumers and limit areas of BEST electricity supply, and grants to manage the system. However, with the BMC turning down all the options, future looks bleak for the undertaking, officials said.

“Till we can continue borrowing from whichever sources, we will. BEST has to repay over Rs 2,000-crore loan and
fill for almost Rs 6,000 crore deficit as per the financial year 2015-16. With a thinner income this year, we have already run out of options to shore up revenues,” said a senior BEST official.

The ridership of BEST has been falling steadily. Inconsistency in buying new ones and high maintenance costs for running old ones have further increased the woes for the utility.

“We cannot offer services to commuters and expect to get a minimal output for the same. Fares should have been doubled in the night bus services from Dadar. Questions have been raised at the undertaking’s decision to give buses on wet-lease, as that affects manpower,” Hombalkar added.

The undertaking now awaits a decision from the Supreme Court on refunds to BEST supply consumers for the TDLR charged on their bills. If the same is approved, the BEST will have to give a part of its earnings annually for four years to its 10 lakh consumers.