More "Power" To The People

MERC Case 13 of 2010

2010-07-05T18:48:00.001+05:30

My presentation has been up loaded at the BIJLEE Yahoo Group site.

Posted via email from More "Power" To The People

Pulling the plug on Mumbai

2010-04-02T20:32:00.000+05:30

Interesting to hear RINFRA say that they've been waiting for 10 years for environmental clearance - making it osound like the Govt is 'sitting on their application'.

The fact is that they've been REFUSED permission, on environmental grounds... and rightly so!! Dahanu are the 'lungs' of Mumbai city!

Instead of finding another location, they're 'sulking' that they haven't been granted what they want (they seem to be used to getting their way!)
===============
Pulling the plug on Mumbai
Dharmendra Jore, Hindustan Times
Mumbai, March 31, 2010

It's going to be a long, hot summer. As in the past five years, there will be no respite for Mumbai's 26 lakh suburban power consumers.

The mercury is fast rising and air-conditioners, coolers and fans are already working overtime. Changing lifestyles and the rise in commercial activities will raise the demand further by 23 per cent, nudging it past 3,000 megawatts (MW) a day. However, supply is likely to peak at 2,400 MW - a shortfall of 600 MW.
And you could face long power cuts or higher bills.

Blame it on the poor expansion of generation capacity and a fight between two arch corporate rivals - the Tata Power Company (TPC) and Reliance Infrastructure (RInfra).

While the state government made many assurances, it could raise power generation by a mere 1.6 per cent over the past year. That leaves it with little choice but to supply power to Mumbai by depriving other parts of the state, where three- to 10-hour power cuts are the daily norm.

In Mumbai, private companies are the major players. TPC generates power and sells it to the Brihanmumbai Electric Supply and Transport (BEST), which supplies the island city, and the Anil Ambani-backed RInfra, which supplies to all of Mumbai's western suburbs and most of the eastern suburbs.

The state-owned power utility plays a direct role only in some eastern suburbs, where it has managed to do away with power cuts altogether. Although this has meant higher bills, customers are satisfied.

BEST too has enough supply; it's only RInfra's customers who face a problem.

RInfra used to buy 500 MW a day from TPC. However, TPC had ambitions of its own in the electricity distribution market. After the Supreme Court allowed it to distribute power to retail consumers (so far it has only directly supplied bulk users like railways) on its own, TPC said it would stop selling to RInfra from April 1 this year.

TPC, which generates 1,900 MW, wants to use the power to supply its own distribution company and sell the remaining power, preferably to the state-owned distributor Mahavitaran. It was encouraged by its first attempt at retailing when many BEST and RInfra consumers switched to it because it offers the best rates.

Alarmed by the prospect of long power cuts and a consumer backlash, the government intervened a week ago. TPC then promised to continue the supply for another month so that the bureaucrats got time to find a solution.

If RInfra is forced to buy power from elsewhere to plug the shortfall, it would have to spend an additional Rs 600-700 crore this summer. This burden is likely to be passed on to consumers.

Both TPC and RInfra officials refused to comment, claiming the government had forbidden them from doing so.

Consumer activist Sandeep Ohri said consumers are the ones who will ultimately suffer. "What we can do is change our supplier. The Maharashtra Electricity Regulatory Commission can play a major role by encouraging competition. It must allow more private players in the city," he said.

A senior bureaucrat saw a temporary solution in the offing. "The government may ask TPC to continue supply to RInfra until the worst of the summer ends," he said on condition of anonymity because the matter was raised in the Legislature and making statements outside the House would breach protocol.

A senior RInfra official said on condition of anonymity that his company was ready to sign a power purchase agreement (PPA) for 500 MW with TPC. "In 2008, we agreed to sign a PPA without preconditions and discuss long-term options for TPC's Unit 8 [a new unit that came up last year]." TPC officials countered
that it could not be forced to supply power to RInfra.

RInfra said that expansion of its Dahanu thermal plant (which has a capacity of 500 MW) by 1,200 MW would solve Mumbai's problem. But it's stuck in red tape. "We have been waiting for environment clearance for 10 years," said the official.
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http://www.hindustantimes.com/News-Feed/mumbai/Pulling-the-plug-on-Mumbai/Articl\
e1-525255.aspx
=======
2009 HT Media Limited.

Its amazing how the past can come back to haunt you

2009-12-26T12:21:00.001+05:30

Here is a news item (TOI, 14-Sep-2003) about how REL (RINFRA's earlier AVATAR), had wanted to get a Distribution License for many cities in Maharashtra. Incidentally, Tata had also applied for few more cities. (Both applications were eventually turned down by MERC.)

REL also wanted to buy power from power producers other than TATA and MSEB. Well its been SIX years since then and RINFRA has still not formally tied up with anyone else!!

Mr. Anil Ambani had a meeting with then then CM, Mr. Sushilkumar Shinde to move this forward. Mr. Shinde, as we all know is now the Union Minister for Power (coincidence?)

Incidentally, while quoting an example of how the 'monopoly' can be broken, an example of BEST's network usage has been given (see second last para).

I do not recall BEST raising an objection at that time, that they were a "Local Authority" ...
==============
Reliance makes power play for 5 towns
TNN 14 September 2003, 11:48pm IST

MUMBAI: Reliance Energy (formerly called BSES Ltd) has made pitch to light up Maharashtra. Following the central legislation allowing competition among firms selling electricity to consumers, Reliance Energy has made an application to the state government to distribute power directly to homes and offices in five major cities of the state— Pune, Nagpur, Nashik, Aurangabad as well as Navi Mumbai, including Vashi, Nerul, Bhandup, Mulund and parts of Thane.

At present, the loss-making Maharashtra State Electricity Board, which had a revenue deficit of Rs 1,462 crore last year, sells electricity in these areas. Sources said Reliance Energy (REL) filed the application to the state government about ten days ago.

When contacted, state chief secretary Ajit Nimbalkar said the company had made a presentation to chief minister Sushilkumar Shinde last week about setting up a new gasbased power station in the state.

"Among the suggestions made by Reliance was that it also wanted to distribute electricity to various centres," he said. "However, it is too early to comment on Reliance Energy's proposal," he added.

Follwing the meeting between Anil Ambani, CMD of REL and Mr Shinde, the chief minister appointed a committee headed by Mr Nimbalkar to look into the various proposals. "This committee will also examine the proposal to distribute electricity in five towns and cities," said Mr Nimbalkar.

According to industry sources, Reliance Energy wants to set the ball rolling to open up the state's electricity sector, after the passage of the Electricity Act at the Centre allowing competition among players in all aspects of the power sector —generation, transmission and distribution.

Reliance Energy also filed an appeal with the Maharashtra Electricity Regulatory Commission about a fortnight ago to open up the existing electricity infrastructure like power lines to competition and fix the necessary charges.

It wants MERC to allow REL to buy power from players other than Tata Power and MSEB for its operations in Mumbai's suburbs,where it sells power to 23 lakh consumers.

According to the Electricity Act, existing monopoly players have to allow other firms to use their existing infrastructure like power lines for a fee.

For instance, if another firm wants to sell power to customers in Mumbai, it can do so using BEST's network of wires but it will have to pay for it.

However, for this to start MERC has to fix the rental rates for using another firm's network and power lines.

=================
2009 Bennett, Coleman & Co. Ltd.
=================
http://timesofindia.indiatimes.com/city/mumbai/Reliance-makes-power-play-for-5-towns/articleshow/181849.cms

Calculation of Wheeling Charges - RTI reply from MERC

2009-12-26T12:19:00.000+05:30

Those who are interested in switching over from RINFRA to Tata, already know that they would still need to pay RINFRA 'wheeling charges' - which is charged by the network owner to the billing/distribution supplier.

MERC in its Interim Order has stated that Wheeling Charges should be paid even by switchover customers.

The question in my mind was how is the Wheeling Charges calculated for TPC and RINFRA and the following details were provided by MERC (under RTI).

RINFRA-D's Low Tension (LT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 121 per kW per month
2. Contract Demand is 4600 MVA / MW
3. Wheeling Cost for the year is Rs. 667.92 cr (121 x 4600 x 12 / 10000)
4. Annual Sales for the year is 7560.17 Million Units
5. WC is Rs. 0.88 per kWh (667.92 / 7560.17 x 10)

RINFRA-D's High Tension (HT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 108 per kW per month
2. Contract Demand is 317 MVA / MW
3. Wheeling Cost for the year is Rs. 41.06 cr (108 x 317 x 12 / 10000)
4. Annual Sales for the year is 896.59 Million Units
5. WC is Rs. 0.46 per kWh (41.06 / 896.59 x 10)

TPC-D's Low Tension (LT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 160 per kW per month
2. Contract Demand is 110 MVA / MW
3. Wheeling Cost for the year is Rs. 21.15 cr (160 x 110 x 12 / 10000)
4. Annual Sales for the year is 572.23 Million Units
5. WC is Rs.. 0.37 per kWh (21.15 / 572.23 x 10)

TPC-D's High Tension (HT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 78 per kW per month
2. Contract Demand is 398 MVA / MW
3. Wheeling Cost for the year is Rs. 37.25 cr (78 x 398 x 12 / 10000)
4. Annual Sales for the year is 2065.90 Million Units
5. WC is Rs. 0.18 per kWh (37.25 / 2065.90 x 10)

For an RINFRA switchover consumer. Take the standard TPC rate, then deduct the TPC-WC (0.37) and then add the RINFRA-WC (0.88).

An Excel sheet is available with me, for those who are interested in doing 'what-if' scenarios.

RTI can get us information - but once we receive it, experts need to 'decode' it and then take follow up action. Many of the technical experts would be interested in this info and how it will affect us going forward.

There is still a VALID dispute whether switchover consumers need to pay the RINFRA WC at all or not - and this matter is also being taken up by the BIJLEE Group.

Trust this has been of help.

Uniform power tariff will cost government Rs. 3,000 cr

2009-12-26T12:12:00.001+05:30

At the risk of being unpopular, I would like to repeat that UNIFORM TARIFF is not the answer!

Not only does it negate the benefits of a competitive environment, it is also NOT permitted by the EA 2003, UNLESS the State Govt grants a subsidy.

When the State Govt grants a subsidy - this will eventually need to be collected (as taxes) from EVERY individual, whether he/she is an electricity consumer or not!

Here is an example of what will happen - the State Govt will effectively undertake to 'fund' these utilities for their 'obscene' rates, and make the general public pay for it, by increasing taxes!! The general public will never know HOW much was collected as additional tax to pay this Subsidy!

Suppose the Govt increases the taxes across many items - and ends up collecting MORE than the Subsidy amount??

In such a situation how can uniform tariff be 'consumer friendly'?

This is similar to leaving our environmental problems to our grand-children..."as long as WE don't have to pay, who cares" - right? Is this the LEGACY we want to leave behind?

We must move away from such 'protectionist' measures and let open market competition 'force' the prices down.

Many people wonder whether RINFRA's consumers switching to TPC would make a big difference. Here are some facts:

1. RINFRA's avge costs are higher than TPC and so the consequent cross-subsidy is a larger spread.
2. On a pure arithmetical basis, it IS more cost-effective for RINFRA's high consumption users, to switch to TPC.

Now, it may appear that TPC 'wants' only high-end consumers - which is not true, as any RINFRA consumer can switch.

There are 2 sides to any argument. One could assume that since RINFRA's higher consumers have moved, it would have raise the level for the rest of its remaining consumers. However, the other side of the story is also that the Demand that RINFRA has to meet will also be lower! Consequently it would have to purchase lesser of the 'expensive' power..

This can only be determined if a really SUBSTANTIAL no of consumers switch. As I understand it, as of date only about 3000 consumers may have completed the switchover. Which is too minuscule a no considering that RINFRA has about 2.7 Million consumers!

The issue is not about RINFRA or TPC being benefited - its about each one of US - each consumer - having a choice.

As far as RINFRA's costs are concerned, I guess MERC's investigation would throw light on whether they actually needed to spend all that money on the Mumbai electricity business .. or even if they actually DID spend that money on us - maybe it WAS diverted into the RINFRA group's other ventures.

Since they have admittedly, not been maintaining separate accounts, there is quite a likelihood that they took money from us and spent it elsewhere.

Trust I have thrown some light on the issue.

(Related news item here...)
================
Uniform power tariff will cost government Rs3,000cr
Ashwin Aghor / DNA
Wednesday, December 16, 2009 2:16 IST

Mumbai: If the state government does decide to take power minister Ajit Pawar's recent announcement about introducing uniform power tariffs in Mumbai seriously, it will have to be prepared to bear an additional burden of Rs3,000 crore annually for the subsidies the city's four power suppliers will have to be provided to bring their rates on a par.

Last week, during the winter session of the assembly, Pawar assured the house that the government will explore the feasibility of uniform power tariff for the city. Uniform tariff is more consumer-friendly, and has already been implemented in cities like Delhi, Kolkata, Bangalore and Ahmedabad, despite them having more than one supplier.
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http://www.dnaindia.com/mumbai/report_uniform-power-tariff-will-cost-government-rs3000cr_1324178

NEWS Posts at the BIJLEE Group

2009-12-26T12:00:00.010+05:30

Here is a summary of the some of the NEWS posts at the BIJLEE Group at Yahoo.
No DVC-Bhel link-up for Raghunathpur project

Govt spent more than required on power: CAG

Patni, Spanco among 4 cos empanelled for power project

50-paise sop will boost wind power capacity, say turbine makers

Pact with Bhutan for 4 hydel projects

They look to sun to light up Carter Road

Activists oppose proposed amendment of MSEDCL rules

BSES fudged June 2009 outage figures by 50% - Committee

Delhi private discoms claim capex of 6000 cr - DERC to enquire
You're paying Rs224.5cr for power emergencies
50 paise/unit sop for wind projects feeding power to grid

Delhi meet finds no solution to power crisis in the state

Public hearing on TNEB's plan for 'reliability charge'

Australia Solar Institute keen to partner Indian research bodies

TN launches power transmission co

TN ramping up power generation capacity

Institution of Engineers favours tie-up with Nepal for hydro power

Govt targets generating 20,000 mw from solar energy by 2020

Roadmap for solar power plan only after 3 years: Farooq

Plan panel seeks note on attracting investment in power

CESC likely to generate power from Budge Budge 3rd unit soon

Govt betting big on private power projects

Feedback is welcome.

ELCB as a safety device for consumers

2009-11-29T19:40:00.001+05:30

I read this news item and was wondering whether shouldn't it be the duty of the utility service provider to ensure safe stabilised supply?

Also, there is a procedure in place for the utility service provider to 'check' and certify the internal wiring before supply. If all of this has been done then why does the consumer need to spend more money and install additional safety devices - at least, in my opinion it should not be made mandatory.

Well, but that's just my opinion :)

BSES appeals to consumers to install safety device

New Delhi, Nov 19 (PTI) Reliance Energy-backed discom BSES today appealed to its consumers to install earth leakage circuit breaker (ELCB) -- a safety device that helps in checking wastage of electricity and prevent accidents.

ELBC detects current to earth and prevents shocks and accidents, a BSES official said adding that it is a small price to pay for safety and peace of mind.

"This simple device detects even a small current to earth automatically tripping and disconnecting the electricity supply," he said.

The BSES has made it mandatory to install ELCB for all new connections of 5 kW and above.

"All existing consumers having a load of 5 kW and above are advised to install ELCB," he said.

Another benefit of installing an ELCB is that it also detects faulty and inter-mixing of internal wiring. On detection, the ELCB immediately trips, thus preventing potential wastage of electricity and accidents.

Latest Posts at BIJLEE Yahoo Group

2009-11-29T18:59:00.000+05:30

Here is a quick snapshot of some of the latest news items that have been posted at the BIJLEE Yahoo Group Site (http://groups.yahoo.com/group/bijlee)

Andrew Yule, FIs to sell off Dishergarh stake
Sumanta Ray Chaudhuri / DNA, Thursday, November 19, 2009 4:36 IST

Companies cede power trading licences
24 Nov 2009, 1005 hrs IST, Subhash Narayan, ET Bureau

BEST sees red over distribution network of Tata
Ashley D'Mello, TNN 24 November 2009, 12:34am IST

To receive these directly, join the BIJLEE Group

Calculate savings of switchover to TATA

2009-11-29T18:48:00.000+05:30

After much work, anguish and deliberations, MERC had issued an Interim Order in the matter of switchover to TATA. I am happy to inform you that we have successfully had the first case of a switchover. An existing RINFRA consumer has been duly moved to TATA - using RINFRA's network and TATA's Meter!

Now, before everyone decides to do the same, first check whether it makes economic sense to switch to TATA. To help you, I have prepared a detailed Excel sheet for Single Phase, Residential consumers (LT-I) Tariff showing the exact calculations and savings of moving from RINFRA to TATA.

Here are some of the results of the calculations in the PRESENT scenario.

For 1,500 units per month:
Existing RINFRA Bill = Rs. 13,391    Switchover TATA Bill = Rs. 9,212
Monthly Savings = Rs. 4,179    Annual Savings = Rs. 50,147

For 1,000 units per month:
Existing RINFRA Bill = Rs. 8,309    Switchover TATA Bill = Rs. 5,828
Monthly Savings = Rs. 2,482    Annual Savings = Rs. 29,780

For 800 units per month:
Existing RINFRA Bill = Rs. 6,277    Switchover TATA Bill = Rs. 4,474
Monthly Savings = Rs. 1,803    Annual Savings = Rs. 21,634

For 500 units per month:
Existing RINFRA Bill = Rs. 3,172    Switchover TATA Bill = Rs. 2,387
Monthly Savings = Rs. 784   Annual Savings = Rs. 9,413

For 350 units per month:
Existing RINFRA Bill = Rs. 1,857   Switchover TATA Bill = Rs. 1,490
Monthly Savings = Rs. 368    Annual Savings = Rs. 4,412

For 200 units per month:
Existing RINFRA Bill = Rs. 879   Switchover TATA Bill = Rs. 760
Monthly Savings = Rs. 119    Annual Savings = Rs. 1,427

For 100 units per month:
Existing RINFRA Bill = Rs. 316    Switchover TATA Bill = Rs. 307
Monthly Savings = Rs. 9    Annual Savings = Rs. 108

It seems clear from the above, that only those consumers who have a higher monthly consumption would benefit more by switching to TATA from RINFRA.

However, the decision to DO-THE-SWITCH must be an informed, long-term decision and not a short-term knee jerk reaction. The attached file covers the PRESENT scenario as well a few other known possible scenarios that may happen in the next one year. For instance:

a) Due to approvals from earlier MERC and ATE Orders, RINFRA already has an 'uncovered gap' of Rs. 1,079 crores! Suppose they get an approval to charge this in next year's Tariff - what would be the impact?

b) MERC has stayed the RINFRA June 2009 Tariff Order, but suppose the stay order is lifted?

c) RINFRA has gone to High Court and asked for a stay on the limit of Fuel Adjustment Charge (FAC) of 67 paise. They are asking for 113 paise/unit. Suppose they succeed?

d) In this Interim Order, MERC has allowed RINFRA to collect Wheeling charges, despite our protests that we have already paid for these. In case, it is ruled that we do not have to pay RINFRA Wheeling charges, then the NEW switchover bills will be even more lower.

e) If the consumer uses a TATA meter instead of a RINFRA Meter, it is possible that consumption recording itself is lower!

The attached Excel file also shows how much would be the difference in case the above scenarios start playing out.

Do feel free to circulate this to all concerned and please send me feedback - especially if there are any errors (this is so complicated, even though I've tried my best, there may still be some mistakes!)

This Excel file is also available on the BIJLEE Group in the Files section here: http://groups.yahoo.com/group/bijlee/files/_RINFRA_SWITCHOVER/

I will request MERC to prepare such types of Calculators and host them on their websites.

Trust this has been of help to you :)

Rediff Article

2009-10-10T00:46:00.000+05:30

Sometimes you get lucky and people get to know about your struggle.

Rediff put this up

http://business.rediff.com/slide-show/2009/oct/09/slide-show-1-meet-the-man-who-took-on-reliance-energy.htm

Feedback is most welcome :)

My presentation at MERC's Publilc Hearing

2009-05-04T07:28:00.000+05:30

Check this out...
http://www.youtube.com/watch?v=p9E-KdDQ7l0

Its the presentation I made at MERC's Public hearing on Rel Infra's Tariff petition.

Got a copy thru RTI.

Hope this encourages more people to make presentations.

More at http://groups.yahoo.com/group/bijlee

Reliance Tariff Hike - Public Response

2009-03-15T04:45:00.002+05:30

The response that I will be submitting to Reliance is attached here and here

Go through it so that you may understand the issues we are dealing with. I am not a legal expert and the legal fraternity may excuse my attempt at this :)

Anyway, I have attempted to include all the issues that would affect Residential consumers.

The procedure is thus:

1. Fill in your name, postal address tel/mobile and email ID (before you take prints). Details need to be filled on Page 1, Page 2 and Page 19.

2. Before Thurs, March 19th, make sure one copy is delivered to
Mr. Ramesh Shenoy, Company Secretary
Reliance Infrastructure Limited
Reliance Energy Centre
Santa Cruz (E)
Mumbai 400055

You would need to show proof of service so make 2 copies and get one stamped / acknowledged by their office - or retain Fax/courier slip (in which case you may need to do it at least one day earlier). There is no email provided for Reliance - so that makes it a little more difficult for us! However, I tried sending it to ramesh.shenoy@relianceada.com.

3. Make 6 copies of the submission (actually make 7, you will need one for yourself!) and attach the fax/courier/stamped page on all 6 copies and then send it before Thurs Mar 19th, to
The Secretary
Maharashtra Electricity Regulatory Commission
13th Floor, Centre No. 1, World Trade Centre
Cuffe Parade
Mumbai 400005
Fax: 2216 3976
email: mercindia@mercindia.org.in

To see what really happens, come for the Public Hearing on Thurs Mar 26th at Rangsharda Natya Mandir, Bandra Reclamation, Bandra (W). The hearing starts at 11am.

Let's try and ensure we get justice done !

- Sandeep.

Reliance's Proposed Tariff Hike

2009-03-14T00:03:00.002+05:30

I have been going through the Reliance Tariff petition and was trying to find out the increase in electricity charges, since Sep 2006 (the past 30 months). I was surprised with the results and decided to prepare a 'calculator' for Reliance customers to realize how much their tariff has gone up in the past 30 months.

I've uploaded the file here on the Bijlee YahooGroup site and you can sign in to access it (scroll down the list to reach the file "Revised_Reliance_Tariff_Calculator.xls).

All you need to do is input your consumption in the yellow box on the first sheet - and the data will appear as to how much you would have paid at various intervals during this time frame. The dates taken are based on the various tariff orders issued by MERC.

I have included the figure of what would happen, if Reliance's current proposal is approved.

Just to give you a few examples:
1. If your consumption is 100 units - in Sep 2006 you would have paid Rs. 205.29, and (if Reliance's proposal is approved) from Apr 2009, you would be paying Rs. 418.76 - a whopping 104% up in 30 months - and average of almost 42% per year (or 3.5% per month)

2. If your consumption is 400 units - in Sep 2006 you would have paid Rs. 1,577.15, and (if Reliance's proposal is approved) from Apr 2009, you would be paying Rs. 2,923.84 - an increase of 85% in 30 months - and average of approx 34% per year (or nearly 2.9% per month).

Just to put this in perspective, the official Inflation Index for India for FY 2006-07 was 519 and for FY 2008-09 it is 582, which means that as per the Govt. the actual inflation has been around 12% (582/519) for this period.

Also, from Sep 2006 till date, central excise duty has come down from 14% to 8% (down 43%), service tax has come down from 12.36% to 10.3% (down 17%), the price of oil (per barrel) has come down from US$ 63.75 to US$ 41.31 (down 35%) - and yet Reliance has petitioned MERC with an increase that will end up in us paying almost 30% MORE.

I wonder if our disposable incomes went up as much !!

The MERC Public Hearing on Reliance's Tariff Petition is scheduled for Thursday, March 26th at Rangsharda, Bandra Reclamation at 11am. I trust at least a few of you would file a public response opposing the hike (I will be filing one - and you would like to do that, please email me and I send you a copy of what I file).

For those who can't wait - send an email to mercindia@mercindia.org.in - not that they take cognizance of emails - but still 1,000 emails can make a BIG difference - considering that there are about 28 Lakh consumers of Reliance... and don't forget to mark me a copy!

Go ahead and try this - and do send me your feedback at sandeep.ohri@ymail.com (bouquets and brickbats - both will be accepted humbly).

- Sandeep

(Disclaimer: I have tried to make this calculator as accurate as possible - but please try and understand that this is really complex and hey.. who said everyone was perfect!)

SC allows Tata Power to retail Power to Mumbai

2008-07-12T14:50:00.002+05:30

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

2008-07-12T14:42:00.001+05:30

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

2008-07-12T14:39:00.000+05:30

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...

2008-07-12T14:32:00.000+05:30

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 ??

2008-07-12T14:23:00.000+05:30

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...

2008-07-12T14:09:00.000+05:30

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..

2008-07-12T14:00:00.000+05:30

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 ...

2008-07-12T13:02:00.000+05:30

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

2008-07-12T12:55:00.000+05:30

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
===============================
Tamasoma jyotirgamaya...
From darkness unto light ...

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

REL changes its name to Reliance Infrastructure

2008-03-12T04:36:00.000+05:30

Don't know how many of you saw the small news item .. but our good friends at REL have decided on another name change!

So now the Mumbai Distribution License which didn't get formally transfered to BSES Ltd .. and then which didn't get formally transfered to REL .. will now (I guess) also NOT get formally
transfered to Reliance Infrastructure... the juggernaut rolls on .. and no one has the gumption to stop it!

Given below are the various news items.

Incidentally, they transfered their entire Infrastructure business to a 100% subsidiary sometime in Oct 2007 .. and now they have decided that the parent company itself should become infrastructure oriented??

If you recall, I had mentioned that one day REL may actually exit the Mumbai electricity distribution business .. well, their focus has definitely shifted ..

Who knows .. they may be monitoring this site more closely than we think ;)

---------
http://www.thehindubusinessline.com/2008/03/11/stories/2008031152520300.htm
http://www.business-standard.com/common/news_article.php?leftnm=press&autono=316\
312
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Rel_Energy_to_b\
e_renamed_Reliance_Infrastructure/articleshow/2853132.cms
http://www.moneycontrol.com/india/news/business/relianceenergyinfrastructurebusi\
ness/relboardapprovestransferinfrabizto100subsidiary/market/stocks/article/31051\
0
(this last link mentions the transfer to a 100% subsidiary)
---------

My presentation at the REL hearing

2008-02-16T19:20:00.001+05:30

I have uploaded the presentation file at the Yahoo Bijlee group site, here.

The file is a 2.8 MB pdf file - so be careful before downloading it.

Those of you who are interested in keeping abreast of such issues, may send
an email to bijlee-subscribe@yahoogroups.com and you will automatically get
such updates.

Response to REL's Petition to MERC

2008-02-12T05:30:00.000+05:30

February 11, 2008

The Secretary,
Maharashtra Electricity Regulatory Commission
13th Floor, Centre No 1, World Trade Center
Cuffe Parade, Mumbai – 400 005
Fax No. : 2216 3976

Dear Sir,

Re: Suggestions / Comments on REL-D's Petition (Case 66 of 2007).

With reference to the above, we have attached our suggestions and comments.
On 13.1.2008, a Public Notice was issued by REL announcing the date of the Public Hearing as 9.2.2008. However, copies of the Petition were not made available to the public, till as late as 24.1.2008.

A news item appeared on 29.1.2008 (see Hindustan Times, Mumbai Ed.) which mentioned that MERC had stated that the all announced Public Hearings were going to be postponed. However, there was no Order available on MERC's website for us to check and verify.

There does seem to be an announcement of a new date for a hearing in the above case, on 14.2.2008. If so, we would like to be heard at the public hearing, even though it has been called for in an illegal manner and the entire conduct of it, goes against the basic tenets of public interest and good governance.

In our opinion, the law on announcement of Public hearings states that a clear three weeks notice must be given. However, no such time has been given – and the conduct of the MERC in this matter has been completely illegal. The MERC has shown scant regard for the existing laws and it has displayed an utter contempt of public/consumer interest.

Since REL has not given any email ID, we are unable to send them a copy. It is suggested that the Hon'ble MERC direct all electricity companies to accept queries by email and publish their email Ids in all public Notices. This practice of physical delivery which inconveniences rhe public MUST stop forthwith. In any case, as per past experience, REL has never provided any satisfactory response and their standard reply is “all the actions are based on directions of the MERC and all details have been submitted to MERC.”

With MERC not being able to rein in such electricity companies, there is no hope for justice to be done.

Thank you.

Sincerely,

Sandeep N. Ohri
Coordinator-Bijlee
Bombay Small Scale Industries Association
2nd Floor, Madhu Compound, Sonawala Cross Road No. 2,
Goregaon (E), Mumbai – 400065

Mobile: 98 33 09 7575
Email: snohri2004@yahoo.co.in

Read the full submission here : http://groups.yahoo.com/group/bijlee/message/1331

MERC forced to postpone public hearings

2008-01-29T08:15:00.000+05:30

Yup, you read that right !

Today's Hindustan Times (Jan 29, Mumbai ed., page 7) has reported that MERC has postponed the public hearings as the electricity companies had not made available (the printed copies of) their Petition books, to the public, as per dates mentioned in their Public Notices.

In particular REL is a defaulter - the Public Notice was issued on Jan 13th and the books were made available as late as Jan 24th, at some of their offices mentioned in their public notice.

Which means that if MERC has to announce a new date, it has to give another THREE weeks notice - hope they will follow their own laws ;)

Meanwhile, the REL petition has a whole lotta misleading and false data - I think legal action should be taken against them for giving incorrect data under affidavit ...

Watch this space for more ...

Raving and Ranting ...

2008-01-23T06:07:00.000+05:30

I'm really angry .. Bear with me on this post ... this is just a general rant!

My "good" friends at the MERC have just no concern for the public - they have announced a slew of public hearings within the next few weeks - for raising electricity tariff.

What really p!sses me off is that these guys are allowed to get away with doing something like this..

They think that the public has enough of expertise and time to do a due diligence on 6 hearings (MahaGenco, MahaTransco, MahaVitaran, Tata, BEST, REL) - which means studying about 3,000 pages of technical documentation .. and then filing one copy with each company and six copies with MERC .. and then appearing at these public hearings ...

What the bloody hell ....

In this age of "consumerism" - the customer is supposed to be God, right?

Crap .. according to MERC, the customer is LAST on their list - though the laws that formed the MERC state that consumer interest has to be protected.

MERC is supposed to be a Regulator of Electricity so that competition is promoted and consumer interest is protected .. and also to ensure fair supply of electricity, etc.

Look at what TRAI has done - and mobile tariffs are continuously going down ..

Now look at what MERC has done .. and electricity tariffs are continuously going up !!

Well, as i said .. this was just a general rant - to let off some steam ... feel better already :)

MERC Public Hearings - Take Action NOW !!!

2008-01-23T05:54:00.000+05:30

The consumer-unfriendly MERC has announced a whole series of Public Hearings - just so that you can be charged MORE for electricity, from April 1st.

Your April bills will come in the first week of May and by then it will be "too late" to file any appeal with MERC - 45 day period from date of Order will be over!

It is better to raise your voice NOW.

If you don't know what to do, don't worry - I have made a list of MERC's violations - and illegalities in the conduct of these hearings - and have posted these files at the BIJLEE Yahoo Group site in this message... http://groups.yahoo.com/group/bijlee/message/1266

Just make the necessary changes (highlighted in BLUE) and courier it to the respective companies as well as to MERC (MERC address is in the document).

Though MERC does not permit email submissions, you can take a chance and also email it to mercindia@mercindia.org.in - and please mark me a copy at snohri2004@yahoo.co.in so that I will be able to take it up with MERC.

The message also has 2 sample pdf files, of my previous submissions, for your reference - so that you can see what a finished output will look like.

Please send these as soon as possible, as the following are the dates:
Jan 21 - MahaTransco (Last date for filing suggestions was Jan 15)
Feb 4 - MahaGenco (Last date... is Jan 29)
Feb 6 - BEST (Last date ... is Feb 1)
Feb 6 - TPC (Last date .. is Jan 30)
Feb 9 - REL (Last date ... is Feb 04)
Feb 18 - Pune - MahaVitaran (Last date .. is Feb 2)
Feb 21 - CBD Belapur - MahaVitaran (Last date .. is Feb 2)

Take action NOW - or pay higher bills later ...

"For evil to flourish, good people have to do nothing .. and evil shall flourish" - Edmund Burke

REL POWER IPO - Poor Retail Investors !!

2008-01-17T23:22:00.000+05:30

17.1.2008

A friend of mine sent this in .. chew on it before you subscribe to the IPO...

--------------------
Reliance Power Limited IPO
Opens: 15th January 2008.
Closes: 18th January 2008.
Price Band: Rs 405 to Rs 450.
Price Band for Retail Investors: Rs 385 to Rs 430. (Rs 20 discount).
Number of shares offered to public: 22,80,00,000 ( 22.8 crore).
+ Number of shares to be subscribed by promoters: 3,20,00,000 ( 3.2
crore).
Total new shares issued (sum of above two) = (26 crore)
Number of shares for retail investors: 6,84,00000. (6.84 crore).
Issue size (public) = (22.8-6.84)X 450 + (6.84X 430) = 7182+2941.2
= Rs 10123.2 crore.
Number of shares outstanding pre-IPO: 200 crore.
Number of shares outstanding post-IPO: 226 crore.
=======================================
Retail Investors and NII can apply with Rs 115 margin per share. (The
details of this have already been discussed in earlier posts).

Maximum application possible in retail category = 225 shares.
=======================================
Already, a lot has been discussed about Reliance Power and its
business (which will be there a few years from now).

This is an extremely rare case where SEBI has allowed a company with
almost 0 revenues, to raise money via an IPO.

If this was an IPO by some smaller group, it would have been 100%
rejected by SEBI for having no business.
=======================================
Business:
The company claims that it will be developing power generation
projects of 28200 MW over the next decade.

According to the IPO RHP, some of the projects that it will be
developing are:
-Rosa-I (to be commissioned in March 2010) - 600 MW - Coal based.
-Butibori (to be commissioned in June 2010) - 300 MW - Coal based.
-Rosa-II (to be commissioned in September 2010) - 600 MW - Coal based.
-Shahpur Gas (to be commissioned in March 2011) - 2800 MW - Gas
based.
-Shahpur Coal (to be commissioned in December 2011) - 1200 MW - Coal
based.
-Dadri (to be commissioned in March 2013) - 7480 MW - Gas based.
-Krishnapatnam (to be commissioned in September 2013) - 4000 MW -
Coal based.
-Urthing Sobla (to be commissioned in March 2014) - 400 MW -
Hydropower based.
-Tato II (to be commissioned in March 2014) - 700 MW - Hydropower
based.
-MP Power (to be commissioned in July 2014) - 3960 MW - Coal based.
-Siyom (to be commissioned in March 2015) - 1000 MW - Hydropower
based.
-Kalai II (to be commissioned in March 2016) - 1200 MW - Hydropower
based.
-Sasan (to be commissioned in April 2016) - 3960 MW - Coal based.

If everything goes as planned, capacity of Reliance Power at end of
each year till 2016 will be:
2008: 0 MW.
2009: 0 MW.
2010: 1500 MW.
2011: 5500 MW.
2012: 5500 MW.
2013: 16980 MW.
2014: 22040 MW.
2015: 23040 MW.
2016: 28200 MW.
=======================================
Other Similar Companies:

I can think of two companies in the power generation sector that
Reliance Power can be compared with:
NTPC and Tata Power.

NTPC has current capacity of 28000 MW and has target to achieve 66000
MW by 2017. (See this thread on NTPC).

Tata Power has current capacity of 2300 MW.

It will be adding 10000 MW of capacity more by 2012. Thus, it will
have a capacity of around 12300 MW by 2012 end.

The additions will all be coal based.
-Mundra Ultra Mega Power Project -4000 MW.
-Power plants in Maharastra - 3000 MW.
-Captive power plants for Tata Steel - 2000 MW
-Maithon Power Plant at Jharkhand - 1000 MW.

Tata Power also has other smaller business and also wants to enter
shipping and logistics. Besides that Tata Power has investments
valued at Rs 400+ per share of Tata Power. This works out to be Rs
10000 crore.

Around 2012 - 2013, both Tata Power is expected to have similar
capacity as Reliance Power.

The interesting thing is at current price of Rs 1457, Tata Power is
valued at just Rs 30000 crore. Remove Rs 10000 crore of investments
and you can have it only for Rs 20000 crore.

At Rs 900, Reliance Power will have market value of 200000
crores....6.67 times that of Tata Power. .
========================================
Financials:

With 2300 MW capacity, Tata Power made standalone profit of Rs 700
crore in FY 2007.

With 28000 MW capacity, NTPC made standalone profit of Rs 6900 crore
in FY 2007.

Lets assume Reliance Power turns out to be much more efficient than
these two companies. Add to that increased power rates.

With 28200 capacity, assume Reliance Power makes Rs 15000 crore of
net profit in 2016-2017. Power companies are considered as utilities
and worldwide trade at 10-15 times their earnings.

Lets assume 15 times ratio for Reliance Power in 2016.
What will be its market value?
15000 X 15 = Rs 225000 crore or Rs 995 per share.

This is an optimistic view:
-there will be no further equity dilution till 2016.
-assuming nearly twice as much efficiency as NTPC.
-that all projects will be completed before 2016 end.
-the company would have paid back all debt by then and interest costs
would be in similar range as NTPC.
(NTPC already has established 28000 MW capacity and comparatively
much lesser interest costs. (NTPC's P&L account states Rs 1800
interest cost for FY 2007).

So what about the debt?
The RHP mentions estimated cost of six projects Rosa I, Rosa II,
Butibori, Sasan, Shahpur Coal, Urthing Sobla as Rs 30000 crore+.

Analysts estimate that Reliance Power will need Rs 70000 crore of
debt to finance its projects which are estimated to cost 100000
crore+.

Rs 70000 crore of debt is not going to come at 2% interest rate. Even
a 6% interest would mean an annual interest cost of Rs 4200 crore.

Only in 2013, the company's capacity will cross 10000 MW. Thus, I do
not expect any major debt repayment before 2014. If things don't go
as planned, the debt burden will make a mockery of the balance sheet.

With Rs 12000 crore raised in equity and Rs 70000 crore of debt,
these whole business will become a high-risk venture.

Any unforeseen delay/derailment of plans may create major problems
for this company.
========================================
Reliance Power - The Overlooked Fact:

Is Reliance Power just "Reliance Power"?
No.
It is actually "Reliance Power Limited" - a limited company.
So what does this mean for Reliance Power Limited?

It means if in the rare case, the calculations of the management go
wrong and the company somehow goes to insolvency, none of the
shareholders will lose anything expect the value of the shares.

If you are a share holder of Reliance Power and it goes into
insolvency (unable to pay back debts), what do you stand to lose?
Rs 430 per share.

Lot of money....right?

What does Anil Ambani's AAA Project or REL lose?
Both of them had got their 45% (post-IPO) stake for Rs 1000 crore
each. Plus they will each subscribe to 1.6 crore shares each at Rs
450 in the IPO......which works out to be Rs 720 crore.

Thus, AAA Project will be getting 101.6 crore shares of Reliance
Power for Rs 1720 crore and REL will be getting 101.6 crore shares of
Reliance Power for Rs 1720 crore.

Little less than Rs 17 per share.

This is what both the promoters are risking in this project....Rs 17
per share; while investors will be risking Rs 450 per share.

This is exactly the reason why Reliance Power was created.

First, by contributing just Rs 1720 crore each to Reliance Power, the
promoters have shifted all risk to investors.

Second, by getting 45% stake (in REL's projects) to AAA Project for a
mere Rs 1000 crore, AAA Projects (and Anil Ambani) have created
wealth out of thin air.

Anil Ambani's Rs 1000 crore investment will be worth Rs 100000 crore
when Reliance Power lists at Rs 900.

If the gamble works, the promoters (holding 90% stake in Reliance
Power) will be worth billions of dollars.

If the gamble doesn't work, the promoters will lose Rs 1720 crore
each and investors will lose Rs 10000+ crore which they will be
paying for a mere 10% stake in Reliance Power.

What a way to create wealth...!!!....I don't have words to describe
the brilliance of Anil Ambani's plans....
========================================
So what will I do with this IPO?
Firstly, I will subscribe to it, not because I think it is a good
company or is offering great value at Rs 430, but because I am in
this market to make money.

The markets are in such a frenzy, nobody bothers about valuations
anymore........not even QIB and other institutional investors.

Everyone knows that Reliance Power will list at a premium and thus
everyone will apply....valuations can wait for some other day.....

Everyone should wait till last day and apply for it. Just check the
subscription levels by 11 AM on last day.
========================================
What will I do post-listing?
For bigger IPO's like Power Grid and Mundra Port, I have followed a
sell-half-keep-half strategy.

Assuming listing at Rs 900, for Reliance Power, I will follow sell-
all-keep-none strategy.

First, other companies are much cheaper.
Why should I keep a company valued at Rs 200000 crore -
when another company (with similar capacity by 2013) is available at
Rs 30000 crore with much smaller debt burden and Rs 10000 crore worth
of investments...........referring to Tata Power.

If Reliance Power (at Rs 900) is available for Rs 200000 crore, why
not buy NTPC for a similar price......Rs 225000 crore. NTPC plans to
have a capacity of 66000 MW in 2017, while Reliance Power will have
28200 MW capacity in 2016.

Second, the risk is higher than other existing companies.
With marginally cash flows for next 5 years and Rs 70000+ crore of
debt, the risk for Reliance Power is high. Tata Power and NTPC have
existing cash flows to handle expansions....Reliance Power does not.

Third and the biggest factor is....the valuation of the company
doesn't make much sense.
Why should Reliance Power be valued at Rs 200000 crore, when in
highly optimistic scenario, it will not make more than Rs 15000 crore
of profit in 2016? Even if it touches that figure of Rs 15000 crore,
its market value in 2016 will not be much more than 225000-300000
crore. (if given a 15-20 times multiple).

A fixed deposit will make more money than that in 8 years.....and
that too without any risk.

Also, I got the optimistic Rs 15000 crore figure by assuming two
times margins as NTPC.

The fact is..... at least till 2014, Reliance Power will still be
carrying most of its Rs 70000 crore debt and its interest costs will
squeeze margins to a large extent.
========================================
Final verdict:
Apply.

I will be selling all shares at 9:55..........not even waiting for a
better price.

If you want to try for a better price, hold at your own risk.
The level of insanity in the markets is at a high...
Value and risk mean nothing today.....price and profit are the
keywords.
Who knows.....the stock may got to Rs 1100 or more.
========================================
Addendum:
Reliance Power may win more projects in the future.

However, it is unlikely that any new project that Reliance Power gets
will be commissioned before 2012. Additional projects will also bring
additional costs too.

It doesn't make much sense to consider future projects before they
are actually won.

Also, Reliance Power is winning projects by offering very low rates -
another factor that will decrease margins and increase risks for the
company.

For example, in case of Krishnapatnam Ultra Mega Power Project,
Reliance Power won with a bid of Rs 2.33 per unit.
L&T had bid Rs 2.69 per unit and Sterlite had bid Rs 4.19 per unit.

Such aggressive pricing may backfire if costs rise due to some
unexpected factors.

Regards,

Omkar Barve
Associate
Keynote Corporate Services Limited
4th Floor, Balmer Lawrie Building,
J. N. Heredia Marg,
Ballard Estate,
Mumbai - 400001

MERC Public Hearing on Dec 6th - 11 am

2007-12-05T06:40:00.000+05:30

If you don't take action now .. you may end up paying higher electricity bills .. again !!

Just a small reminder that there is a Public Hearing on Dec 6th at the YB Chavan Auditorium (Opp. Mantralaya), Mumbai - at 11 am.

This is to hear public suggestions / comments on MSEDCL's petition to increase electricity tariff in lieu of imposing second "staggering" day.

MSEDCL proposes to purchase "costly power" from Kawas/Kayakulam (at around Rs.8-9 per unit) and from Captive Power plants (at around Rs. 11-12 per unit). It proposes to distribute this expensive power through a FRANCHISEE arrangement, to Industries and other consumers
who will be charged higher tariff.

My response (already filed with MERC) is available here on the bijlee Group site: http://groups.yahoo.com/group/bijlee/files

File Name : BSSIA_Public_Response_60_of_2007.pdf

I wonder how many of you (in this group) are affected by the MSEDCL's proposed hike .. and how many have filed a response.

Just goes to show that we are great at e-mailing - but poor when it comes to taking action !

More such stuff if you join http://groups.yahoo.com/group/bijlee/

I can be reached at snohri2004@yahoo.co.in

Incidentally, MERC has allowed the public to send emails (instead of the cumbersome procedure it had earlier) .. something I had taken up in the MYT tariff hearings ...

Moral of the story: When you keep at it .. your chances of success are greater ...

Great article on the Anil Ambani strategy!

2007-11-10T08:20:00.000+05:30

Part of REL stake being sold to foreign company ...

One fine day, he may just reduce REL to a loss-making distcom .. and hive off all other profitable parts of the business .. and then collect MORE tariff quoting losses ....

Its a WIN-LOSE situation .. Ambani wins .. and all consumers lose ... just wait and watch ..

The article appears here:
http://www.businessworld.in/content/view/2561/2639/

and goes like this ...

"Anil Ambani is back to doing what he is best at — deals. The Anil Dhirubhai Ambani Group (ADAG) chairman is planning to sell a 5 percent stake in his power generating company — Reliance Energy (REL) —to a foreign but hitherto unnamed partner.

Officials close to the negotiations between REL and its future partner say that the deal is nearing closure. The shares may be sold at Rs 1,100 a share, Rs 93 higher than the conversion price of foreign currency convertible bonds (FCCBs) issued in 2004 and Rs 154 higher than the closing price on BSE on 19 September.

Offloading 5 per cent will fetch REL a cool Rs 1,254 crore."

CFLs are toxic ..

2007-11-10T08:17:00.000+05:30

Well, I had mentioned this earlier, that in India we have no formal policy for dumping (I think, disposal is the right word..) for CFLs.

While curtailing consumption, we may land ourselves in a more serious problem.

More here:
http://groups.yahoo.com/group/bijlee/message/938

MERC handing out more goodies to Private Discoms

2007-11-10T08:11:00.000+05:30

MERC has not been able to satisfactorily handle (and/or regulate) private distributors in Mumbai, and yet it is going on granting distribution rights to others.

Here is the latest move:
"Crompton Greaves bags 3 power distribution divisions in Nagpur

Mumbai, Sept. 18 Maharashtra State Electricity Distribution Company Ltd (MSEDCL) will give three divisions in the Nagpur circle to Crompton Greaves Ltd for distribution of power.

Earlier in the year, the loss-making Bhiwandi circle was handed over to Torrent Power for similar purpose.

Aurangabad, Ulhasnagar, Kalwa, Ahmednagar, Dhule, Malegaon and Jalgaon circles could also be soon offered to private companies."

More here:
http://groups.yahoo.com/group/bijlee/message/933

Delhi Govt yet to submit ATR

2007-11-10T08:09:00.000+05:30

As usual, the Govt is dragging its feet .. and no one seems to care .. here is a news item that begins:

"The Delhi govt is yet to submit the action taken report on the findings of a panel on power privatisation in the city to the assembly and Lt Governor Tejendra Khanna is seized of the matter, Speaker Chaudhary Prem Singh said today.

"We are yet to get the report. We have intimated the Governor's office that we have not received the report so far," Singh said.

Singh was responding to a query from the reporters if he had received the action taken report on the findings of the Public Accounts Committee led by Congress MLA S C Vats, which had recommended probe in the case by the CBI."

More details here:
http://groups.yahoo.com/group/bijlee/message/932

Is this for real ??

2007-11-10T08:04:00.000+05:30

BMC has asked REL to light up immersion sites all across Mumbai ...and till recently REL was fighting with MERC to not allow Tata to give 800 MW to BEST as they are short of power !!

The article goes on to say ..."Reliance energy have also said that there will be no shortage of electricity in the city, They have sufficient capacity to meet the need of this festival, There are around 7000 odd pandal that lights up from 6pm to 12mid-night. "

Oh Boy !! Someone please file an RTI application quick - to find out from BMC why did they ask REL, when they have their own BEST who can do this !

Also, if REL has actually made this statement ... find out how can REL conclude that there will not be any power shortage .. have they done any study ?? Let's see a copy of that.

The article appears here:
http://theseaguardianlifeguard.blogspot.com/2007/09/reliance-energy-to-put-flood-light.html

Here we go again ...

2007-11-10T08:00:00.000+05:30

Come September .. and it's time for the Power Utilities to start their routine...

The media starts getting flooded with reports of impending doom about the power scenario.

Here is the first of many reports... this one pegs Maharashtra's shortage at 3500 MW.

http://groups.yahoo.com/group/bijlee/message/915

News from Mysore

2007-11-10T07:58:00.000+05:30

The bijlee power struggle is everywhere ... here is what is happened in Mysore.

http://groups.yahoo.com/group/bijlee/message/907

Consumer Activists protest against Power companies

2007-11-10T07:50:00.000+05:30

Here is the full text of a Press Release from CERS:
ELECTRICITY COMPANIES ENDANGERING LIVES OF CONSUMERS

The Ahmedabad based Consumer Education and Research Society has filed a petition before Gujarat Electricity Regulatory Commission against State owned four Distribution Companies and Chief Electrical Inspector for violation of Electricity Rule-33 of Indian Electricity Rules-1956 which mandates provision of separate earth terminals atthe premises of residential and commercial consumers.

The existing practice of providing earth terminal from solidly grounded neutral at transformer end is out dated and does not fulfill provision of Electricity Rule - 33. These DISCOMS continue to follow old and obsolete 'TT' system of earthing, that too not fully wherein case of earth fault MCB/fuse at consumers' premises remains as show piece and will not cut of power supply of consumer.

The new and safe 'TNCS' or 'TNS' systems of earthing provides better safety to consumers' lives and property against electric shock/fire/voltage related damages. The private Distribution Companies in Gujarat follow this new system of earthing since ages. .pa

During last hearing on 30th August 2007 before Hon'ble Commission the monitoring agency i.e. office of Chief Electrical Inspectorate and four Discoms of Gujarat submitted that the cost of providing separate earth terminals will cost Rs.300/- to each consumer putting a burden of Rs.275 crores on four DISCOMS.

CERS strongly objected to this proposal and representated before GERC that these DISCOMS have already collected the amount while providing new connections to consumers under the head of Service Line Charges but failed to provide separate earth terminals to consumers' premises violating Rule-33. Therefore the consumers are not liable to pay any amount and the cost has to be borne by DISCOMS.

The Hon'ble Commission reprimanded and directed CEI and all DISCOMS to study the system prevailing at Torrent Power and resolve this issue by implementing Rule 33 of IER-1956 and submit Action Taken Report to GERC before 15th October 2007.

CERS was representated by Shri K K Bajaj (Hon Director) and Shri V.J.Vachharajani (Consultant).

Little brother playing "Catch Up"

2007-11-10T07:45:00.000+05:30

So now we know why the electricity tariff keeps going up .. little brother seems to be playing "catch-up" - and the distance is quite far !!

With help from us (gullible) electricity consumers, he'll get there soon !!

NEWS: Mukesh Ambani's salary is ten times that of Anil's ...
http://www.business-standard.com/common/storypage.php?autono=296625&leftnm=1&subLeft=0&chkFlg=

Text is also here:
http://groups.yahoo.com/group/bijlee/message/888

Brothers in Arms ..

2007-11-10T07:43:00.000+05:30

It seems I am not the only one screaming out ... here's another ...
http://worldbankout.blogspot.com/2007/08/poor-who-pay-for-price-of-power-reforms.html

Reward scheme to check power theft

2007-11-10T07:40:00.000+05:30

Watch out Delhi .. here comes REL/BSES with another one of its great "schemes" ...

How about a "tip-off" scheme for blowing the whistle on REL/BSES also .. maybe some consumers should start that as well :)

More here:
http://groups.yahoo.com/group/bijlee/message/882

PM needs to issue a Press Release to get informatoin from his own Depts !!

2007-11-10T07:34:00.000+05:30

Here is the PM waking up from his slumber .. and wanting to know what is happening on the Power Reforms front ..

Looks like they do not have a sensible reporting/feedback system in place .. as the PM has to issue a Press Release to get an update from one of his own departments !!

These guys need help badly .. !!

Full text is here:
http://groups.yahoo.com/group/bijlee/message/880

Govt keeps private sector out - Really ?

2007-11-10T07:29:00.000+05:30

There was a news item that appeared saying this ...

"The Government said private sector cannot participate in nuclear power generation under the existing Atomic Energy Act but a review is required in view of changing situation.

"Atomic Energy Act, 1962 allows nuclear power generation only by a Central Government company," Prithviraj Chavan, Minister of State in the PMO, told Lok Sabha during Question Hour.

As far as manufacturing of equipment and components is concerned, he said no policy change is required.

In fact, the Government has encouraged and worked with both public and private companies in this regard, the Minister said.

It was only in nuclear power generation that no decision has been taken with regard to private sector's participation, he said.

The existing Act was last repealed in 1962 and since then various developments have taken place in the area, the Minister said.

The review of the Act is under consideration for the past 10 years, he said. An expert committee was set up in 1997 under the chairmanship of scientist Raja Ramana who gave a report in 1998, he said.

Asked about recommendations of the Committee, Chavan said these related to national security and strengthening of the regulatory mechanism in the atomic energy."

Now, if this is the case then what about reports that companies like Reliance Energy, Tata Power, etc. were very keen on setting up Nuclear power projects .. there was a lot of media hype when the US delegation visited India ...

Really ?? .. or were those news items released only to pump up the share prices of those companies .. REL share has almost doubled since June 2007 ....

Open letter to MERC Chairman on Consumer Representatives

2007-08-12T18:40:00.000+05:30

I sent this to mercindia@mercindia.org.in on 12.8.2007 with copies (not BCC) to a few media and other concerned persons.

-------------
12.8.2007

To:
Dr. Pramod Deo, Chairman,
Maharashtra Electricity Regulatory Commission
13th Floor, Centre No. 1, World Trade Centre
Cuffe Parade, Colaba, Mumbai-400005.

Dear Sir,

Re: RTI reply on MERC's "Consumer Representatives"

1. This is with reference to the four organisations that are referred to as "Consumer Representatives" by MERC, time and again, in Public Hearings of the MERC. These are:
a) Mumbai Grahak Panchayat, Mumbai
b) Prayas, Pune
c) Thane Belapur Industry Association, Navi Mumbai
d) Vidharbha Industries Association, Nagpur

2. As per Section 94(3) of the Electricity Act, 2003, a State commission "may authorise any person, as it deems fit, to represent the interest of the consumers in the proceedings before it."

3. We are all aware that the Electricity Regulatory Commissions Act, 1998 has been repealed by Section 185 of the EA 2003.

4. Yet, MERC has referred to these four as "Consumer Representative u/s 26 of the ERC Act 1998" in the matter of the Public Hearing on Approval of Long Term Power Purchase Agreement between BEST & TPC-G (Case No. 87 of 2006), held on 17.7.2007 (which I attended, and have in my possession a copy of the attaendance sheet).

5. MERC has admitted (in a reply dated 24.7.2007, to an RTI filed on 19.7.2007 by Shri Kewal Semlani) that "the Commission has not appointed any Consumer Representatives (CRs). They have been authorised to represent the interest of the consumers in the proceeding."

6. MERC's reply also states that since this is an "authorisation" the "terms of appointment, tenure, scope of work, deliverable, remuneration, etc. are not applicable."

7. MERC's reply further states that "all copies of all notices are marked to these authorised consumer representatives and they were attending the hearings where generic issues are involved. No compilation of attendance is maintained."

8. In light of the above, and in public interest, I would like you to answer the following questions:

a) How is MERC ensuring that it is fulfilling the mandate given to it (under the EA 2003) of ensuring that consumers interests are protected, when it has not even formally appointed any "Consumer Representatives" ?

b) Why are there no defined eligibility terms for any such appointment of Consumer Representatives (or people who would protect the interests of the consumers) ? In the absence of any firm eligibility terms and conditions, such "authorisations" seem highly suspect.

c) Does MERC not think that this matter is serious enough ? With electricity tariffs rising more than three-fold (in most cases) over the past two years, consumers are reeling under tariff shock, and the State Commission seems to be taking this lightly. Had it not been for the RTI application, the public would never know the truth.

d) Why are these four (who have been so authorised) not been made to take their role seriously? This is apparent from the fact that they do not have a defined role, scope or work, deliverable list - and moreover, MERC does not even maintain an attendance schedule for them.

e) Why has MERC been referring to a repealed Act ? The ERC Act 1998 was repealed by section 185 of the EA 2003. Does the MERC not know of the sections of the Act governing itself?

9. If this is the level of commitment of the MERC itself, what can be expected of the four organisations. In fact for the last hearing as mentioned above NONE of the four turned up! (I was present and I know it).

10. I look forward to a more formal and systematic approach to the protection of consumers' interests, which includes the following:
a) MERC should cancel the present authorisations with immediate effect.
b) A transparent process of appointment of such Consumer Representatives should be put in place.
c) There should be clearly defined eligibility terms, scope of work, deliverables, etc. Persons / organisations who have business relations with electricity companies cannot be eligible for this role.
d) MERC must keep a close watch on such "appointees" and must ensure that they are fulfiling their roles adequately in protecting consumers' interests.

10. You may or may not choose to respond to these questions and may ignore this mail completely, which will go further in proving that MERC does not take protection of consumer interests seriously, neither does it bother about consumers rights, opinions or feelings.

11. Since we (the general public) are continuously suffering on account of higher tariff, I am alarmed that you as the Regulator have not done enough to ensure that our interests are protected - which is indeed a matter of great shame for the organisation that you head.

I trust you will take the necessary action in this regard and restore the faith of the consumers in your organisation.

Thank you for your patience (in reading this mail).

Warm regards,

Sandeep N. Ohri
98 33 09 7575
snohri2004@yahoo.co.in

PS. Since this is a matter of public interest, I have taken the liberty of marking a copy to some sections of the Media and a few concerned individuals / organisations who I feel may be in a better position, than myself, to take this up this issue further.

MERC hiding the fact that its Chairman was BSES Director !!

2007-07-22T19:54:00.000+05:30

MERC is hiding the fact that it's Chairman, Dr. Pramod Deo was once a Director in BSES (now REL).

This is the MERC link: http://www.mercindia.org.in/pdmember.htm

This is REL's Official link:http://www.rel.co.in/investorrelations/pdf/98-99/dirrepo99.pdf

See page No. 6 of this BSES Director's Report, which was signed by RV Shahi, who was the CMD of BSES and then went on to became the Secretary in the Ministry of Power !!

Now do you see the nexus between BSES-REL-MERC-Ministry of Power ??

Just Google "DEO BSES" .. Great Results !!

And you were wondering how come electricity tariff keeps going up .. Ha !

Should MERC interfere with the Agreement between Tata & BEST ?

2007-07-15T12:48:00.000+05:30

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 ...

News Links for June 2007

2007-06-30T11:40:00.000+05:30

City’s power situation may worsen after monsoon
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/Citys_power_situation_may_worsen_after_monsoon_/articleshow/2110283.cms

Ok.. here we go again ... the monsoon has not even started andthe "doomsday" experts have started their propaganda.

Powerless Karachi Residents Protest
http://www2.dw-world.de/southasia/South_Asia/1.224965.1.html
Our "sister" city in Pakistan is having the same "growing pains" ...

KG basin gas may not yield cheap power, say analysts
http://www.livemint.com/2007/06/10234404/KG-basin-gas-may-not-yield-che.html

Govt may not sell Dabhol's LNG unit
http://timesofindia.indiatimes.com/Business/India_Business/Govt_may_not_sell_Dabhols_LNG_unit/articleshow/2110737.cms

Reliance Energy seeks clarification on contingency reserves
http://www.financialexpress.com/fe_full_story.php?content_id=166842

Going up in gas
http://economictimes.indiatimes.com/Opinion/Editorial/Going_up_in_gas/articleshow/2116212.cms

Resolving Energy Disputes -- There are more efficient processes
http://uaelp.pennnet.com/display_article/294531/34/ARTCL/none/none/Resolving-Energy-Disputes----There-are-more-efficient-processes/
A very good article on how protracted litigation eventually results in the consumer paying for much more ..REL are you listening ?? Eventually we consumers are paying for REL's (expensive) lawyers also ...

Promoting CFL: States switch off incandescent bulbs
http://www.thehindubusinessline.com/2007/06/12/stories/2007061204430100.htm

U.S. leads world in wind power growth: DOE report
http://uaelp.pennnet.com/display_article/294515/22/ARTCL/none/none/US-leads-world-in-wind-power-growth:-DOE-report/?pc=ENL
The US produces 16% of the World's wind power, followed by Germany,India, Spain and China !

New era in electricity industry starts June 18: NERC
http://uaelp.pennnet.com/display_article/294422/22/ARTCL/none/none/New-era-in-electricity-industry-starts-June-18:-NERC/?pc=ENL
Oh, when will that day come .. when utility companies are fined upto Rs. 1 crore per day for failing in reliability standards ...Great article...

Anil Ambani power project gets UP nod
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=50fb9b22-d6b2-4aaf-b9c3-4b5706c7ae6f&&Headline=Anil+Ambani+power+project+gets+UP+nod
So Mayawati has also settled in now .. and its business as usual forthe rest ... :)

RNRL invokes RTI for KG gas details
http://economictimes.indiatimes.com/RNRL_invokes_RTI_for_KG_gas_details/articleshow/2124320.cms
Anil Ambani using RTI .. now is his own REL transparent enough ??Naah ...!

Private power transmission plans hang fire
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/Private_power_transmission_plans_hang_fire/articleshow/2124477.cms

Mayawati spells out energy reforms
http://www.dnaindia.com/report.asp?NewsID=1103212
Mayawati jumps on the power bandwagon .. hints at power tariff hike .. . Just as soon as the REL Rosa project got clearance ..coincidence ??? .. Well, somebody has to PAY for all this, right ?? No points for guessing WHO ... it's US, the usual aam aadmi ..

A brand new power tariff policy for Capital
http://www.thehindu.com/2007/06/17/stories/2007061705730100.htm
DERC seems more straightforward than MERC .. but let's see how they conduct the public hearings ...

REL forms disaster mgmt teams to tackle power cuts during rains
http://www.newkerala.com/news5.php?action=fullnews&id=39727
Let's hope this works ... seems to me they read my blog :)

RNRL falls for the charm of black diamond
http://www.telegraphindia.com/1070619/asp/business/story_7943029.asp

Suryachakra Power's 3.4-crore share IPO to open Jun 25
http://economictimes.indiatimes.com/Suryachakra_Power_IPO_to_open_on_Jun_25/articleshow/2131134.cms
Holdings, cross-holdings, JVs, subsidiaries .. in the maze of Corporate ownership .. will transparency ever be possible ?

REL to procure 450 MW of power for Sept-Oct
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/REL_to_procure_450_MW_of_power_for_Sept-Oct/articleshow/2132785.cms

Contract labourers send consumers on power trip
http://www.dnaindia.com/report.asp?NewsID=1104546
Wi-fi appliances for disaster management .. but who will carry out the work ?? .. The white-collared babus in REL's Air-conditioned offices ???

Maharashtra Government drive to curb theft of electricity
http://www.hindu.com/2007/06/21/stories/2007062150940900.htm
Maharashtra CM's Latur district has 60% Distribution Loss .. !

US Senate's Underwhelming Energy Bill
http://www.citizen.org/pressroom/release.cfm?ID=2461
We are not alone .. its the same all over .. big business-houses muscle their way into Govt and make consumers not only pay for this .. but also suffer the environmental consequences..

India's Sensex Rises; Reliance Energy, NTPC Gain on Court Order
http://www.bloomberg.com/apps/news?pid=20601091&sid=a22G3aiXtD0w&refer=india

China building more power plants
http://news.bbc.co.uk/go/pr/fr/-/2/hi/asia-pacific/6769743.stm

Gas pipeline for Dabhol delayed again
http://www.business-standard.com/economy/storypage.php?leftnm=3&subLeft=1&chklogin=N&autono=287469&tab=r

Maha ready to pay Rs 2.87/unit for Ratnagiri power
http://www.financialexpress.com/fe_full_story.php?content_id=166955

GAIL to complete Dahej-Uran-Dabhol pipeline by month end
http://www.domain-b.com/companies/companies_g/gail/20070622_complete.htm

VAT relief for Dabhol
http://www.business-standard.com/common/storypage.php?autono=288792&leftnm=3&subLeft=0&chkFlg=

Dabhol output may go up to 5,000 Mw
http://www.rediff.com/money/2007/jun/22dpc.htm
Fairly comprehensive take on the Dabhol situation ....

TNEB lines up 2,500 MW projects
http://www.thehindubusinessline.com/2007/06/27/stories/2007062702342300.htm

Cleco Power to pay $2 million penalty for violations
http://uaelp.pennnet.com/display_article/295157/22/ARTCL/none/none/Cleco-Power-to-pay-$2-million-penalty-for-violations/?pc=ENL
We should start penalising eletric utilities here too. Look at this .. Cleco Power was penalised US$2 Million as it violated the code of conduct (read:Regulations) wherein its employees of one department were "shared" !!

Remember, we have been asking REL to "separate its accounts of all its electricity business" .. well THIS is the reason why. Also, the US Regulator has stated that this penalty amount may NOT BE COLLECTED from the consumers ! Shame on MERC ...

Ambani vs Ambani: SC stay on sea link bids
http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=24681
REL continues to cause more delays - just to fuel its own business interests .. fair enough as far as a business venture goes ..But what about the benefit of the public .. as far as REL is concerned .. the public can take a "walk" .. literally .. and the sea-link project be damned !Typical ...

Reliance Energy's subsidiary raises Rs 20 bn debt
http://www.myiris.com/newsCentre/newsPopup.php?fileR=20070627072853126&dir=2007/06/27&secID=livenews

Anil Ambani meets AP CM, discusses various projects
http://www.newkerala.com/news5.php?action=fullnews&id=42218

Go to the police, if you get a dodgy bill, says Patil
http://www.hindustantimes.com/StoryPage/Print.aspx?Id=672f309f-c03d-4ff7-9aeb-2ef7d794a729#
Now you can make a Police complaint for an inflated bijlee bill !! Its happening .. its slowly happening ... the change will come ...

Govt targets 80,000 MW renewable energy capacity
http://www.thehindubusinessline.com/2007/06/29/stories/2007062951681000.htm

Shinde worried over shortage of turbines for power generation
http://www.thehindu.com/2007/06/28/stories/2007062854671700.htm

Sunil Khanna quits Reliance Bluemagic
http://www.televisionpoint.com/news2007/newsfullstory.php?id=1183134520
Not that it affects us directly...but whatever is happening at REL seems to eventually affect tariff .. especially in the absence of separation of accounts .. till then I guess, we need to keep abreast of the developments ... :)

Should we pay "Reliability Charges" ???

2007-06-28T20:37:00.000+05:30

If the lights go out .. please DO NOT pay Reliability Charges if they have been levied in your electricity bills !!

I am inferring this from MERC's reply, given to me, under RTI.

You are aware that in the Multi-Year Tariff Orders, MERC has introduced a new charge called "Reliability Charge" as an additional tariff rate over and above the normal rate of electricity, for all consumers across Mumbai.

These Charges are at different rates for each supplier. For example, for different categories...

- BEST levies 38 and 157 paise per unit
- REL levies 29, 74 and 109 paise per unit
- TPC levies 21, 121, 166, 186 and 221 paise per unit
- While MahaVitaran levies something called ASC, but no "Reliability Charges".

The public has been informed that this Reliability Charge is levied by electric companies to ensure uninterrupted supply of electricity and hence we have to pay more as these companies need to make arrangements for standby/expensive power, etc., etc. - in order to NOT impose any load shedding.

The important question that arises is .. in case the supply is "interrupted" ... i.e. the lights go out .. Do we STILL pay the Reliability Charges ??

I posed this to MERC under RTI, of course, else they do not respond (my letter No. MERC/016 dated 22.5.2007) and in question no. 13, I asked for minutes of the meetings and discussion papers related to the issue of introduction of "Reliability Charges" - the concept, etc.

I received a reply No. MERC/ADM/172/Right to Infor. Act/1220 dated 7.6.2007, mentioning that this "Reliability Charge" is not a new concept and that this has been done earlier by MERC in the matter of an MSEB order dated 10.1.2002.

Since I had asked for documentary proof, I was given a hard copy of the relevant pages of that Order (which is also available on the MERC website at www.mercindia.org.in).

Read what the Order states, and make your own inference.

MERC Order dated 10.1.2002 in Case No. 1 of 2001, in Section 30.2.1 on "Reliability Charge - Application" - at page 177

Para 2 states:
"The intent of introduction of such charge as a component of tariff is to collect revenue from the consumers, who do receive uninterrupted (reliable) power supply."

Para 4 states:
"The MSEB will impose an additional charge of 25 paise per kWh, as a component of tariff to these consumers and ensure that they get uninterrupted power supply.

In any billing cycle, if there is any interruption in power supply from the MSEB system to these consumers, this Reliability Charge shall not be levied.

For the purpose of determination of uninterrupted power supply for the billing cycle, the planned interruptions (such as days covering staggered load programme of the MSEB for industrial consumers) shall be excluded."

Ok, so as "I" understand it:
# The Reliability Charge is to be paid for uninterrupted supply.
# In case supply is interrupted for any reason (other than a planned Load-shedding schedule), this charge is NOT payable.

Now, go figure it out yourself !

If anyone has any doubts, please feel free to contact me .. or better still .. ask MERC (under RTI) for copies of my RTI application and their own reply (details are given above).

Go ahead .. this is all public domain .... ;)

CNN IBN bows to REL pressure ?? Link yanked !!

2007-06-08T09:34:00.000+05:30

This link:http://www.ibnlive.com/videos/41036/week-2-roys-still-powerless.html was a program aired by CNN IBN (Part 2 of 4, I am given to understand).

Apparently, after the 2nd episode, CNN IBN "apologised" to Anil Ambani (I don't know how far this is true...) and therefore episodes 3 & 4 were not aired.

Now this link is also pulled off !!!

Interestingly, recent newspaper reports have it that the Turner Group (CNN) has tied up with Rel Comm for providing media streams on Reliance Mobile.

Coincidence??

To be fair .. CNN IBN, IBN7, etc. were already available on Reliance handsets.

It seems that "BUSINESS" took precedence over "NEWS" for CNN IBN too .. the latest to join the casualty list .. after TOI ... but then, that's my opinion ;)

Draft CEA Regulations - Public Response needed

2007-06-08T09:31:00.000+05:30

Here is a Link for the Draft Safety Regulations put out by the Central Electricity Authority:
http://www.cea.nic.in/e&c/regulations/draft_regulations/public%20notice.htm

The last date for public response is July 6th, 2007.

On the lighter side ...

2007-06-08T09:29:00.000+05:30

This day may not be far when this actually happens .. with Reliance getting into each and every aspect of our lives ...

Read this fun piece here...
http://shivanathan.rediffiland.com/scripts/xanadu_diary_view.php?postId=1181121155

New's Links - 8th June

2007-06-08T09:05:00.000+05:30

Lanco-Globeleq, four others extend bid bond validity
http://www.financialexpress.com/fe_full_story.php?content_id=165816

RGPPL mulls buying gas from RIL for Dabhol power plant
http://news.andhrajyothy.com/dotNews/dotNews-readNews.aspx?newsId=6392

MSEB users to pay more
http://www.dnaindia.com/report.asp?NewsID=1100392

Petronet to supply gas to RGPPL
http://www.financialexpress.com/fe_full_story.php?content_id=165620

JBIC loan for Maharashtra power
http://www.thehindubusinessline.com/2007/06/04/stories/2007060401321500.htm
So now the approved interest rate should be 1.3%, right ?

HC dismisses REL's plea over sea link project
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Oil_Gas/HC_dismisses_RELs_plea_over_sea_link_project/articleshow/2098252.cms
An ADAG bid .. disqualified for not having enough "cash profit" .. Oh boy .. look for a Tariff hike, guys !!

Peak power shortfall is likely to go to 700MW in 2008 and hit 900-1,000MW in 2009
http://www.livemint.com/2007/06/06002050/Supplier-gets-rap-on-knuckles.html
Another article .. sounds like REL propaganda. Also, factually incorrect. It says that Tata generates 2300 MW (actually it is 1777MW) and REL generates 800 MW (actually its 500MW) .. well, so much for responsible journalism ...

Petronet losing $70,000 a day on gas pipeline delay
http://www.moneycontrol.com/india/news/business/petronet-losing-3670000daygas-pipeline-delay/284561

REL, Tata Power all set to end dispute, share site
http://www.livemint.com/2007/06/07002312/REL-Tata-Power-all-set-to-end.html
Methinks that REL being asked to "shift" its Gas power plant .. is not really a slap for REL .. maybe its a blessing in disguise .. they may not have the Gas to power the plant anyway .. looks stage-managed to me ! Also, the reporter makes the same mistake on Tata's and REL's power generation capacity...

Maharashtra may bear extra tariff, discount in VAT for Ratnagiripower
http://www.financialexpress.com/fe_full_story.php?content_id=166378
Sure, go ahead .. burden the consumer .. who else will pay ...

NTPC to infuse Rs 500 cr in Dabhol
http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=38761&template=&cache=6/7/2007%2011:11:42%20PM
Strange, why two separate Press Releases were made ... see below

GAIL to pump in Rs 500 cr in Dabhol
http://timesofindia.indiatimes.com/Business/India_Business/GAIL_to_pump_in_Rs_500_cr_in_Dabhol/articleshow/2105080.cms
And surprisingly, this one did not mention that NTPC too had put in 500 cr.. see above

It rained last night in Mumbai Suburbs ...

2007-06-01T08:16:00.000+05:30

It was more than just a pre-monsoon drizzle. It was a reasonably heavy downpour - accompanied by the usual thunder and lightning .. and the sweet aroma of wet mud :)

However, this also brought on the fear of what happened to us in Mumbai on that fateful 26/7 day in 2005.

I don't know if REL is equipped to handle another disaster like that.

See this link

http://www.hinduonnet.com/fline/fl2217/stories/20050826005501000.htm

that appeared at that time - just as a reminder of how flat REL fell on its nose.

With the kind of obsence tariffs that they have taken from us since October 2006, by jove, if they mess up this time .. they will really have to pay dearly...

The Rs. 100 cr so graciously announced by Anil Ambani (in the article) ...was not from his own pocket .. WE consumers paid for it .. so now we'd like to see us getting our money's worth.

Just two days back there was a sub-station trip at Poisar which plunged a few parts of Borivili/Kandivili into darkness for nearly two hours - 8.15 pm to11.00 pm. Without the rains if this is the situation .. what can we expect when it rains??

If we have even ONE hour of power outage anywhere in Mumbai suburbs on account of any silly reason ascribed to the rains, REL top brass should FORFEIT their salaries and commissions ...

How's that Mr. Anil Ambani .. ready to put your money where your mouth is ??

Today's News Links 1.6.2007

2007-06-01T08:10:00.000+05:30

REL hunts for miner in Indonesia
http://www.financialexpress.com/fe_full_story.php?content_id=165467

Reliance Bluemagic gets DTH licence
For the current article, click here:
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=e246271a-5fd9-4a91-bbe4-d3036b53752c&&Headline=Reliance+Bluemagic+gets+DTH+licence

Surprisingly, no mention of the fact that the Bluemagic License belongs to Reliance Energy !! See these links:
http://www.efytimes.com/efytimes/fullnews.asp?edid=5020&magid=
http://www.indiantelevision.com/headlines/y2k6/sep/sep101.htm

Today's News Links 30.5.2007

2007-05-30T09:16:00.000+05:30

Oh, boy, we're in trouble .. the PM is "worried"

"Worried PM calls meeting on power with state chief ministers"
http://www.livemint.com/2007/05/28001906/Worried-PM-calls-meeting-on-po.html

-----------------------

I had raised this issue at the MahaVitaran public hearing. The MSEB network (all 3 cos) had projected a spend of over Rs.62,000 crores in the three-year MYT period. Yet after all of this Genco stated that its power generation capacity would increase only 8% !! And Vitaran stated that there would still be 6-7 hr power cuts across Maharashtra. They also projected the T&D loss to come down (across the network) from approx 40% to approx 35% only ! Now MERC seems to have woken up ....

"MERC wants MSEB to phase out Capex programme"
http://www.zeenews.com/znnew/articles.asp?rep=2&aid=373667&ssid=50&sid=BUS

-----------------------
Interestingly, this next article has reference to the "Dahanu expansion project" .. When did REL get the clearance ?? They haven't yet complied with Supreme Court's ruling on the FGD plant for reducing existing environmental pollution ...

"Reliance Energy eyes coal mines abroad"
http://economictimes.indiatimes.com/News/News_By_Industry/Indl_Goods_Svs/Reliance_Energy_eyes_coal_mines_abroad/articleshow/2081601.cms

-----------------------
And here's great gyaan from the Delhi CM...

"Delhi dependent on neighbours, says Sheila"
http://www.tribuneindia.com/2007/20070529/delhi.htm

-----------------------
I came across this interesting piece on Wind Power....
http://portland.indymedia.org/en/2006/11/350013.shtml

-----------------------
And here's our own CM mouthing more data ...

"Maharashtra could face 11,000 MW power shortage"
http://economictimes.indiatimes.com/News/PoliticsNation/Maharashtra_could_face_11000_MW_power_shortage/articleshow/2080766.cms

Bro vs. Bro - Part 2 .. or 3 .. or ??

2007-05-30T09:13:00.000+05:30

"RIL to set up Power Plant in Baramati", is what the Economic Times (Mumbai Ed) page 3 reported on 28.5.2007.

RIL is setting up a (captive) power plant in Baramati, Maharashtra.

51% of the power will be used captively while 49% can be made available to the State Grid.

How's that for by-passing the non-compete clause with bro, Anil??

Reminds me of MAD comics' "Spy vs Spy" ....

PM's Remarks at the CMs Conference on Power

2007-05-30T09:06:00.000+05:30

Here is what the PM had to say.

A lot of words.
Too many (oft heard) promises.
Not enough concrete action on the street.

Opening remarks here:
http://www.pib.nic.in/release/release.asp?relid=28277

Closing remarks here:
http://www.pib.nic.in/release/release.asp?relid=28298

They don't look very different do they ?

The opening remarks had a few harsh words on the Regulators which were softened in the closing !

Rest of it is pretty much "babu"-speak (read:same thing twisted around).

Talking of "Babus" .. here's Dr. Ahluwalia's remarks:
http://www.pib.nic.in/release/release.asp?relid=28297

If the PM has no control (or very little control) over what's happening .. what hope is there for the rest of us??

Why is HE upset that things are not happening ! If HE can't get it done .. who the hell is running this country ??

Maybe we should empower the President a lot more ... if only we can get Dr. Kalam to agree to stand again ...

Today's News Links

2007-05-27T23:08:00.000+05:30

Rs 197-cr MERC boost to cut T&D losses in city
http://cities.expressindia.com/fullstory.php?newsid=238040

REL's Dadri project to be reviewed: Mayawati
http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=38481&template=&cache=5/25/2007%206:14:43%20PM

IHT reports on India's Power struggle ..

2007-05-26T07:50:00.000+05:30

The International Herald Tribune featured this article .. also reproduced by MINT, yesterday.

Interestingly it says the national shortfall is only 14% (approx 14,000 MW) .. but here the Maharashtra Govt says we have a shortfall of around 6,000 MW .. so the REST of India put together needs only another 8,000 MW ???

Not that I believe the State Govt either - they said that Mumbai has a shortfall and that there would be load shedding this summer ... well, did anyone notice any blackouts ??

Where do these guys get their numbers from ??

http://www.iht.com/articles/2007/05/24/business/sxview.php

Workers go on rampage at Reliance thermal plant

2007-05-26T07:48:00.000+05:30

This happened at REL's new Haryana plant - surprisingly reported by NewKerala first ... now that's the power of the media !

http://www.newkerala.com/news.php?action=fullnews&id=33025

Malini Shankar moved out of MERC

2007-05-26T07:18:00.000+05:30

Well Deshmukh has finally done it. He has moved Malini Shankar, Secretary MERC, out. She now will be Development Commissioner.

The news item doesn't say who moves in .. but I hope it is someone more sensible.

http://timesofindia.indiatimes.com/Cities/Mumbai/Deshmukh_transfers_28_babus_/articleshow/2072945.cms

Madras High Court decision set aside

2007-05-25T23:09:00.000+05:30

Ok, I just came across this one and need to find out more, but it sounds very interesting ...

http://www.business-standard.com/economy/storypage.php?leftnm=3&subLeft=3&chklogin=N&autono=285484&tab=r

Will keep you all posted ..

Mercury in CFLs .. New Problem !!

2007-05-25T11:55:00.000+05:30

Well we seem to be out of the frying pan and into the fire ..

Just when we thought we could switch from incandescent bulbs to CFLs, we now have the Cassandras talking of Mercury levels in CFLs being dangerous if CFL-recyling plants do not exist (They DO have a point).

Read related articles here:
http://consciousearth.blogspot.com/2007/05/cfls-mercury-small-problem-thats.html

and here:
http://www.reuk.co.uk/Toxic-Mercury-in-CFL-Bulbs.htm

Received your NEW electricity bills yet ?

2007-05-25T08:14:00.000+05:30

For those of you in Mumbai, this is about the time we get our new MERC-approved first MYT-Tariff Bills.

The biggest impact will be felt by the BEST consumers, whose bills will almost DOUBLE !! .. and they didn't even turn up for the Public Hearing ...

REL's small industrial consumers will be pleased that the Fixed Demand Charge is now only above 20kW (26.5 HP) as against the earlier 11.25KW (15 HP).

Also, the Billing Demand will be calculated on 65% of Max Demand hit (as opposed to 100% earlier).

And the rate for Fixed Charge has come down to Rs. 300 per kVA, from Rs. 374 per kVA.

All in all, small industries will get approx 45% LOWER bills (on account of the Fixed Demand itself) and many may actually "escape"the clutches of Fixed Demand by the increase in threshold.

Some reason here to smile !

Residential users, make sure you have only a SINGLE-phase connection. If you have a three-phase connection, get it converted to single-phase. Check your electricity bill, by seeing what is the FIXED charge that you are paying, you will be able to figure out whether you are single-phase or three-phase (Rs. 100 Fixed charge generally means you are in three-phase, unless your consumption is unduly high).

However, the rates have gone up for all suppliers and now the Max rate for units in excess of 500 has crossed Rs. 7 .. so watch your consumption, guys !

The other issue that we fought for .. a parity on the Prompt Payment Discount and Delayed Payment Charges, has also been finally rectified by MERC. Now the discount and penalty will be calculated on the same elements (excluding only duuties and taxes, which is fair) .. so consumers can now avail of prompt payment discount even on the Fixed Charges and Power factor penalty/incentive also :)

Will post a detailed comparison of all suppliers' rates later.

Today's News Links

2007-05-25T07:40:00.000+05:30

Wind-cum-solar units planned in 100 villages
http://www.thehindu.com/2007/05/24/stories/2007052404920500.htm

MERC powers up consumers
http://www.cybernoon.com/DisplayArticle.asp?section=fromthepress&subsection=inbombay&xfile=May2007_inbombay_standard13007

Why can't we just ban the incandescent bulb?
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=2a1f4455-1496-48a0-880a-cf5db90661b1

Corruption in Electricity Services
http://www.livemint.com/2007/05/02221320/Corruption-in-Electricity-Serv.html

Energy-saver lamp sales grow 50% over 3 years
http://www.livemint.com/2007/05/24011135/Energysaver-lamp-sales-grow-5.html

State to get 14,000 MW in the future
http://www.dnaindia.com/report.asp?NewsID=1098573

Mayawati wants Anil Ambani's SEZ scrapped
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=c05b89fc-1ea2-4780-867e-4033b8941b1a&&Headline=Maya+puts+a+hex+on+Anil’s+trade+zone

Land for Power Plants at cheap rates ??

2007-05-23T08:04:00.001+05:30

It seems that BSES Delhi wants the Delhi Government to sell land at cheaper (than market) rates, to set up their Power plants.

Why ?

They are going to be making enough money anyway - as is apparent from their latest Results, available here:
http://www.moneycontrol.com/india/stockpricequote/powergeneration/relianceenergy/05/14/quarterlyresults/marketprice/RE10

The news item appears here...
http://www.livemint.com/2007/05/22201352/Delhi-government-wants-power-c.html

Today's News Links

2007-05-22T23:48:00.000+05:30

BEST assurance falls flat on face
http://www.dnaindia.com/report.asp?NewsID=1098333

PFC to look into misrepresentation of facts by Lanco Infratech
http://www.financialexpress.com/fe_full_story.php?content_id=164836

High on power, low on delivery
http://www.financialexpress.com/fe_full_story.php?content_id=164801

Reliance Cap books Energy profit
http://www.telegraphindia.com/1070522/asp/business/story_7811859.asp

NTPC goes green, to foray into wind power
http://www.zeenews.com/znnew/articles.asp?aid=372493&ssid=53&sid=BUS

MERC for judicious use of power
http://www.business-standard.com/economy/storypage.php?leftnm=lmnu2&subLeft=1&autono=284216&tab=r

MSEDCL asks regulator to do rethink on power cuts
http://www.business-standard.com/common/storypage.php?autono=285083&leftnm=3&subLeft=0&chkFlg =

Greens budget speech
http://www.smh.com.au/news/national/greens-budget-speech/2007/05/10/1178390461145.html?page=2

Cogeneration projects get a boost
http://timesofindia.indiatimes.com/Cities/Pune/Cogeneration_projects_get_a_boost/articleshow/2024459.cms

First Post ...

2007-05-22T22:53:00.000+05:30

Ok .. so it was getting a bit much to have all the bijlee (electricity) related posts on my personal blog.

So I thought of setting up a new one here (at bijleepower) that deals exclusively with bijlee.

You can look forward to more links on news items - pretty much like what we have at the Yahoo Bijlee Group site at http://groups.yahoo.com/group/bijlee/

Hope you are em"powered" by these posts !

BTW, my personal blog continues at http://snohri.blogspot.com ... and will become a lot more informal ;)