Sunday, July 15, 2007

Should MERC interfere with the Agreement between Tata & BEST ?

FACTS:
  • Tata generates and supplies all the power that is required by BEST.
  • Tata has been doing this for more than 70 years now.
  • BEST has no generation of its own.
  • BEST is a Local Authority (controlled by the Municipal Corporation).
  • The Tata-BEST Agreement expired in 2004, but is valid till another is signed.
  • MERC, as the Regulator, forces them to sign a new one.
  • They finally sign a new one in Dec 2006 taking into account current demand of 800 MW.
  • Tata supplies balance power (after giving to BEST/own consumers) to REL.
  • REL is a private operator having its own Power Generation and TRading companies.

Now, MERC asks Tata to divert power to REL, and wants BEST to source power from elsewhere !!

Wouldn't the rates increase for BEST consumers in case BEST does not find any other source at the same rate ?

Why should MERC interfere in such a deal? It is clearly a case of OVER-regulation!

How can MERC give itself more powers than what the Electricity Act 2003 has given it ?

MERC can't do what they should ..
... like protect consumers' interests,
... like get REL to be transparent and separate accounts,
... like disseminate knowledge about the actual power situation in Mumbai (under an RTI reply to me, they admitted that they DO NOT KNOW how is Mumbai's Demand being met !).

Seems to me that MERC wants BEST to increase its rates .. and take a lot of flak .. while REL laughs all the way to the Bank ...

A Public Hearing is scheduled for July 17th on this ... I have made a submission ... watch this space ...

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