Pulling the plug on Mumbai

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.
=======
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

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

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

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.
===================
http://www.dnaindia.com/mumbai/report_uniform-power-tariff-will-cost-government-rs3000cr_1324178

Latest Posts at BIJLEE Yahoo Group

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

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

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

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

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.

SC allows Tata Power to retail Power to Mumbai

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

See this..

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

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

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

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

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

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

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

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

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

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

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

06.07.08 (great date!)

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

Dear Sirs,

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

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

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

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

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

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

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

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

Look forward to receiving your response on this issue.

Warm regards,

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

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

"Name change reflects new business", says REL

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

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

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

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

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

REL becomes REL INFRA becomes REL POWER ??

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

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

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

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

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

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

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

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

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

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

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

How long are you going to buy this story ??

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

Power companies make merry..

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

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

And now read this...

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

REL changes its name to Reliance Infrastructure

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

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.

MERC Public Hearing on Dec 6th - 11 am

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 ...

Is this for real ??

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

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

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 !