The Appellate Tribunal for Electricity (ATE) has ruled that Tata Power Company (TPC) is now allowed to supply electricity to consumers in Mumbai.

The move will allow consumers in the country’s financial capital to switch from Brihanmumbai Electric Supply and Transport Undertaking (BEST) to the private provider. The ATE upheld a ruling by the Maharashtra Electricity Regulatory Commission (MERC) dated February 22, 2010 in an order on 4 April.

The order by MERC, which was challenged by BEST, had allowed TPC to supply electricity to consumers in areas served by BEST by developing its own distribution network so as to discharge its obligations under the Electricity Act 2003. The Electricity Act 2003 calls for electricity supply to all consumers.

BEST presently supplies power to consumers in Mumbai and it has a license to serve areas from South Mumbai to Sion in the east and Mahim in the west. The ATE said that MERC has the authority to issue directions to TPC on the matter of its obligation to supply electricity under the Act.

“The status of the appellant as a local authority engaged in the business of supply of electricity cannot in any way hinder the right of exercise of choice of supplier by the consumers to switch over to the second licensee of the area,” the order said.

The ruling will allow prime customers in areas like Nariman Point and Central Mumbai to shift to TPC for cheaper power supply.