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 ...

R-ADAG's BIG TV (DTH) to offer special rates to REL users ...

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

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

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.

Response to REL's Petition to MERC

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