SC allows Tata Power to retail Power to Mumbai

Get set for (re)entry of Tata Power in the Mumbai Retail sector.

See this..

Increased competition is good news for 25L electricity consumers who are presently 'suffering' under R-ADAG's tyranny.

Now, to clear out a few doubts (no doubt, created by some vested interests):

1. Tata Power does NOT have to apply for a fresh License, as reported in some sections of the Press. It already holds a valid license for supply to the whole of Mumbai. In fact, the interpretation of that very license was the one questioned by REL in the Supreme Court. So the question of a 'fresh public hearing' (which is mandatory before grant of a license) need not be held.

2. Tata Power does not need to file for a fresh 'Tariff Order.' It has already received an approval for its latest Tariff Order as it is already supplying electricity to Mumbai and already HAS some retail consumers. MERC had put a 'stay' on it getting 'new consumers' below 1000 kV, but it was (and is) already serving many consumers in the general retail segment.

3. Tata Power need not set up an entirely new distribution network. The Electricity Act 2003, in its great wisdom, had already forseen this situation and already provides for any distributor using the distribution assets of another (to avoid cost-escalation). The second distributor woulod need to pay the first one a charge for usage, called 'wheeling charges'. Incidentally, MERC has already approved standard wheeling charges as well.

The only delay I foresee is in the logistics of the execution. REL will now give TPC a hard time in freezing these wheeling charges (and also in finalising the modalities of which assets it can 'share').

The other side issue that arises is that of REL's requirement of electricity, now that many of its customers may want to move to TPC.

REL may now, not need so much electricity from outside its Dahanu plant and hence need not buy 'expensive power'. Also, it may not need so much of capital expenditure.

Hence, its chargeable tariff may actually come down !! Right ?

Well, maybe I'm not so smart after all ;)

Is MERC lying .. or is REL Infra lying ?? - Open letter to MERC

06.07.08 (great date!)

To
The Secretary & Members
Maharashtra Electricity Regulatory Commission
Centre 1, World Trade Centre
Mumbai

Dear Sirs,

Re: Status of Reliance Infrastructure Ltd (erstwhile Reliance Energy Ltd) as an Electricity Distributor under the EA 2003

Please refer attached 2 image files:
1. MERC-RTI.jpg
2. REL_July4th_article.jpg

The first one is a reply sent by your organisation stating that Reliance Infrastructure Ltd is not authorised to distribute electricity.

The second one is an advertisement released by the same Reliance company stating (in the first para under 'Background') that 'Reliance Infrastructure is an electricity distribution company with a distribution license to supply electricity in and around the suburbs of Mumbai..'

Now, please tell us (the general public whom you are supposed to serve - and who pay for your salaries from their hard earned money) .. WHO is LYING?

Did your PIO lie to Mr. Ponrathnam (in the RTI reply) or is the Reliance ADAG company lying (in a public advertisement)?

If your PIO is lying - he can be penalised and so can your entire organisation.

If the Reliance ADAG is lying.. what action can you take? In the past there has never been any penal action on the lies that this same Reliance ADAG company has told (please refer the latest Tariff Order - where they have 'admitted' to making numerous mistakes .. and you have done NOTHING!)

Look forward to receiving your response on this issue.

Warm regards,

Sandeep N. Ohri
Coordinator-bijlee
Bombay Small Scale Industries Association
snohri2004@yahoo.co.in
9833097575

Copy to: The Fourth estate and other like-minded people - with a request to ensure fair play to the common tax-payer...

"Name change reflects new business", says REL

Remember I had said that when there is a change in name, the objectives of the company also change? Read here, what the company themselves have to say about their name change.

Go on, MERC, keep saying that a name change makes no difference.. now how are you going to figure out how much of the tariff collected is going towards Mumbai electricity business...

I'm DAMN sure WE suburban residents are paying for ALL their other business ...

Here's an interesting point of view .. if their costs of electricity purchase goes up -- they don't HAVE to raise the tariff, they will just report a slightly lower profit in their quarterly results .. so
WHY the hell doesn't MERC understand this ????

If anyone has the gaul .. please haul these guys up...!!

REL Name change announcement...

Click this link www.rel.co.in and see what happens ...

Also, here is the link for the official announcement on the REL website here:

http://www.rel.co.in/newsmedia/pdf/REL_now_Reliance_Infrastructure.pdf

Hahaha.... Sorry, but I can't stop laughing .. one of the biggest groups in the country - and THIS is the 'sneaky' way in which they announce their name change!

REL becomes REL INFRA becomes REL POWER ??

OK .. so we all know that Reliance Energy first moved some of its Power Generation projects to Reliance Power (much to the 'disgust' of REL's shareholders).

Then it changed its name from Reliance Energy to Reliance Infrastructure.

Now, it seems (as per this news item from The Hindu) that the 'electricity' business of (erstwhile) Reliance Energy .. has gone to Reliance Power ???

..and all this while our own MERC fiddles a la Nero ...while we burn (the candles...)

REL's name change and what it means to you...

REL applied for a change of name .. to Reliance Infrastructure .. now here's the fun ..

As we all know (via RTI) that the Electricity Distribution License for Mumbai Suburbs belongs
to 'Bombay Suburban Electricity Supply Company Limited' ...

... whose name was changed to 'BSES Limited' and 'Transfer of license' was not even applied for!
... and then the company was taken over by Reliance (undivided) group and again, no Transfer was applied.
... and then the company was 'allocated' to Anil Ambani Group and again, no transfer was applied.
... and then the name was changed to Reliance Energy Ltd and again, no transfer was applied for. In fact this time MERC tells the public that no transfer is required in a name change and tries to convince the people that Companies Act 'overrides' the Electricity Act (when it reality it DOES NOT)
... and now the name is changed to Reliance Infrastructure and do you think they have applied for a Transfer ?? Keep guessing !! More on that later ...

Anyway, the other point is that everytime a name change is effected, there needs to be a major change in the 'Objects' of the company - meaning the new company may now, not really be strictly an 'electricity' company - making it even more difficult for MERC (or anyone else) to figure out the accounts and the profitability of the electricity business .. so how are we going to determine tariff ??

The spineless MERC has still not been able to get REL to submit a separate P&L (and Balance Sheet) for the Mumbai Electricity business .. so consumers will again be taken for a ride.

On one hand REL is declaring one successful Quarter after another .. with upward spiralling profits .. and on the other hand it is trying to tell MERC that it is suffering a loss on account of higher Purchase Cost .. and therefore it needs to RAISE tariff !!

How long are you going to buy this story ??

Chew on it .. as you pay higher bills this summer....

Power companies make merry..

Power companies have been telling us for quite some time that they are running up losses .. at least that's what REL has always been trying to tell us.

Consequently, they keep raising the rates on account of the so-called higher purchase costs.

And now read this...

If you've noticed .. all such news is reserved for the 'stock market' oriented sites .. and the general press gets the dreary news about rising costs .. doomsday situation ... raising tariff .. etc ...

R-ADAG's BIG TV (DTH) to offer special rates to REL users ...

Here's a news item that's really interesting.

First R-ADAG takes away BIG chunks of your money .... then they give you handouts .... and makes it look like a BIG deal!

(all Puns .. intended, of course !) ..

Read this here...

Incidentally, no one seems to be speaking of the fact that the original DTH license given to R-ADAG, was actually under Reliance Energy! I had mentioned this in one of my earlier posts..

Shouldn't REL shareholders be miffed at the entire business being 'surreptitiously' being moved to Reliance Entertainment (or is it Reliance Capital??)

MERC Case NO. 6 of 2008 - Open letter to MERC

29.4.2008

The Secretary,

MERC

Dear Sir,

This is with reference to Petition filed by M/s Reliance Energy Limited in Case No. 6 of 2008 - a hearing for which has been scheduled on 30.4.2008.

We understand that this Petition has invoked section 23 of the EA 2003 which has a great implication on consumers all over Mumbai city (http://www.mercindia.org.in/Events_Notices/Events_APR_08/Evt_H_30_04_08_1100_06_of_2008.pdf)

This matter is also of great public interest, involving scope, jurisdiction and regulatory powers of MERC - eventually resulting in an impact on tariff.

This tariff impact will affect the general public and, as such, all concerned consumers should be given an opportunity to have their say and therefore a public hearing, with due process, should be held. I am therefore, surprised that this is being heard by MERC without involving the general public.

I trust you will call for a formal general public hearing, to keep the interest of the general public in mind - and will look out for a formal announcement to this effect.

Thank you.

Warm regards,

Sandeep N. Ohri
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Tamasoma jyotirgamaya...
From darkness unto light ...

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Sent in the interest of the public good, without prejudice.