Tata Power lights up

While the consumers of Tata Power might be a very sad lot today, the stock price is doing very well. The stock which had closed on Friday at Rs.86.05, opened higher at Rs.89.20, its high point of the day and is currently strongly in the green, up over 2.6%.

The stock is up on news that the Maharashtra state electricity regulatory commission on Saturday approved a 25% increase in tariff for the year FY14. Maharashtra Electricity Regulatory Commission (MERC) has approved an average increase in tariff to Rs 5.26 from the existing Rs 4.19 for FY14 for residential consumers, which will be effective from July 1. The Commission has approved the multi-year tariff plan till 2016 of Tata Power and allowed an increase of 25% forr FY14, 15% for FY15 and 11% for FY16 for residential consumers. For FY15, the average tariff for residential consumers has been increased to Rs 6.07 while for FY16, the Commission has approved an increase in tariff to Rs 6.74.