Showing posts with label Consumers. Show all posts
Showing posts with label Consumers. Show all posts

Sunday, March 15, 2009

Reliance Tariff Hike - Public Response

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.

Saturday, March 14, 2009

Reliance's Proposed Tariff Hike

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!)

Saturday, July 12, 2008

SC allows Tata Power to retail Power to Mumbai

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

See this..

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

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

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

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

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

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

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

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

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

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

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

06.07.08 (great date!)

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

Dear Sirs,

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

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

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

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

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

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

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

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

Look forward to receiving your response on this issue.

Warm regards,

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

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

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

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

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

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

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

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

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

How long are you going to buy this story ??

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

Power companies make merry..

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

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

And now read this...

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

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
===============================
Tamasoma jyotirgamaya...
From darkness unto light ...
===============================
Sent in the interest of the public good, without prejudice.

Saturday, February 16, 2008

My presentation at the REL hearing

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.

Tuesday, January 29, 2008

MERC forced to postpone public hearings

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 ...

Wednesday, January 23, 2008

Raving and Ranting ...

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 :)