Its amazing how the past can come back to haunt you

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" ...
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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.

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

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Companies cede power trading licences
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BEST sees red over distribution network of Tata
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MERC Case NO. 6 of 2008 - Open letter to MERC

29.4.2008

The Secretary,

MERC

Dear Sir,

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

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

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

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

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

Thank you.

Warm regards,

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

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

MERC Public Hearings - Take Action NOW !!!

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

Should MERC interfere with the Agreement between Tata & BEST ?

FACTS:

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

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

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

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

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

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

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

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

Received your NEW electricity bills yet ?

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.