The scrips of Tata Power and Reliance Infra moved up due to the Delhi Electricity Regulatory Commission’s decision to increase tariff.
Their stock prices ended higher by 2.3 per cent and 1.8 per cent, respectively. Tata Power closed at Rs 97.65 a share and Reliance Infra at Rs 543.90.
“Today’s news will only affect Tata Power and Reliance Infra stocks as these companies provide electricity in NCR. This is good news for the State Electricity Boards because if they are allowed to increase tariff, they will be able to buy more from these companies,” said Mr Gaurav Dua, Head of Research, Sharekhan.
Therefore, the increase in power tariffs is being looked upon as a good sign. The BSE Power Index was the second best performer on Wednesday, up 1.03 per cent.
Domestic power tariffs have risen by 24 per cent but the surcharge of eight per cent on the bill would take the tariff higher. Commercial power prices are up, 19.49 per cent. For industries, the tariff is higher by 20.2 per cent.