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Strengthening of Distribution Network may Increase the Consumer Base

News:

Tata Power, which has a consumer base of half a million in Mumbai, will seek the Maharashtra Electricity Regulatory Commission (MERC)’s approval to strengthen its distribution network in the city.
Source: Business Standard

SNP Insights:

Strengthening and expansion of distribution network is likely to increase the share of TATA consumers from approx. 35% to 50%. However, network strengthening to reduce the cross over consumer may add upto the tranasmission cost and also may hamper the competition provision of the Electricity Act 2003.
Source: SNP Infra Research