Mumbai, Jan 2 (IANS): The Maharashtra Electricity Regulatory Commission (MERC) has given the green light to BrihanMumbai Electric Supply & Transport Undertaking (BEST) to extend its existing power purchase agreement with Tata Power Co. Ltd. for five years, officials said on Wednesday.

The 677MW PPA will be extended from April 1, 2019 to March 31, 2024 on the existing terms and conditions, as per a MERC order.

The power is supplied to BEST from TPC's Trombay Thermal and Hydro plants for the consumers in south Mumbai.

The BEST had submitted to the MERC, which delivered its order today, that continuing the existing arrangement with TPC would be the cheapest option before the distributor.

"As always, we are committed to supplying the most reliable and competitive power meeting the needs of BEST commuters," said TPC CEO and Managing Director Praveer Sinha on the development.

The extension will ensure cheaper power to Mumbai consumers plus the advantage of hydro peaking power at the lowest rates in the country.

It will also ensure continuous reliable power supply to the country's commercial capital from the embedded TPC thermal and hydro generating stations in view of the transmission constraints.