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.