Mumbai:
Soon, dining at restaurants in Mumbai may get a lot more expensive. Worried about the rising cost of electricity, restaurant owners in Mumbai are contemplating yet another hike in menu rates.
In the recent annual revenue requirement statement issued by power companies, a 15 to 40 per cent increase in electricity tariff has been suggested. Ironically, as many as 4,570 commercial and 1,564 industrial consumers recently shifted to the Tata Power network, because it was comparatively cheaper to other power companies.
"If this hike is passed by the Maharashtra Electricity Regulatory Commission (MERC), we will be left with no option but to pass it on to consumers by increasing menu rates," said Pradeep Jain, member, Indian Hotel and Restaurant Association (AHAR).
"Hopefully, MERC will not pass the order in their favour. We are going to file an objection statement," Jain said, adding: "This is not the first time AHAR might have to pass on the cost to consumers. In 2008, a similar hike was observed after a leading power company hiked the tariff by almost 50 per cent."
"We are shocked by the proposal. We will urge the commission not to grant permission in the larger interest of consumers. We are investigating Tata's proposal, which runs into a few hundred pages. Unfortunately, the time given to consumers pursuant to the public notice is only 20 working days," said Pradeep Shetty, Chairman, Legal matters sub-committee, Hotel & Restaurant Association, Western India (HRA-WI).
Shetty revealed that TATA has asked for a 25 per cent hike for residential users and a 35 per cent to 40 per cent hike for commercial users.
"Power companies need to go slow on increasing the power tariff. Ultimately, it is the end consumers who suffer. Already, prices of food items are high, and a hike in electricity tariff will only increase the burden on us," said Sharaddha Pawar, a Bandra resident.
Priyanka Khanna, a housewife, echoed Pawar's sentiments. "We may have to cut down on eating out if the prices increase."
In the recent annual revenue requirement statement issued by power companies, a 15 to 40 per cent increase in electricity tariff has been suggested. Ironically, as many as 4,570 commercial and 1,564 industrial consumers recently shifted to the Tata Power network, because it was comparatively cheaper to other power companies.
"If this hike is passed by the Maharashtra Electricity Regulatory Commission (MERC), we will be left with no option but to pass it on to consumers by increasing menu rates," said Pradeep Jain, member, Indian Hotel and Restaurant Association (AHAR).
"Hopefully, MERC will not pass the order in their favour. We are going to file an objection statement," Jain said, adding: "This is not the first time AHAR might have to pass on the cost to consumers. In 2008, a similar hike was observed after a leading power company hiked the tariff by almost 50 per cent."
"We are shocked by the proposal. We will urge the commission not to grant permission in the larger interest of consumers. We are investigating Tata's proposal, which runs into a few hundred pages. Unfortunately, the time given to consumers pursuant to the public notice is only 20 working days," said Pradeep Shetty, Chairman, Legal matters sub-committee, Hotel & Restaurant Association, Western India (HRA-WI).
Shetty revealed that TATA has asked for a 25 per cent hike for residential users and a 35 per cent to 40 per cent hike for commercial users.
"Power companies need to go slow on increasing the power tariff. Ultimately, it is the end consumers who suffer. Already, prices of food items are high, and a hike in electricity tariff will only increase the burden on us," said Sharaddha Pawar, a Bandra resident.
Priyanka Khanna, a housewife, echoed Pawar's sentiments. "We may have to cut down on eating out if the prices increase."
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