Bses Moves Regulator Against Tata Power

The Bombay Suburban Electric Supply (BSES) has petitioned the Maharashtra Electricity Regulatory Commission (MERC) against Tata Power Company (TPC) who it alleges is poaching on its consumer base in violation of its terms of license.

BSES has alleged that TPC has been supplying electricity to consumers on a retail basis and to those having an energy requirement of less than 1,000 KV in violation of the term of the license issued by the Maharashtra government, that has also been made a party (respondent) in the case.

"The Indian Electricity Act, 1910, clearly states that power utility can get into a contract of sale of electricity only with the state electricity board or with the permission of the state government. TPC has a licence to supply energy in bulk and is clearly not licensed to make supply to consumers having requirement less than 1000 KV," the petition states.

Incidentally, the BSES license does not have any ceiling or condition on the loads it can supply, the petition adds.

A moot issue of BSES is that many of its consumers, including eight HTP and 53 LTP consumers, had switched over to TPC for their power requirements without clearing the dues dues owed to BSES.

The provision under the electricity act for disconnecting the power supply to defaulting consumers could not be effected since they were being serviced through a parallel network by TPC.

BSES has also alleged that since TPC was installing a parallel infrastructure the cost of the same was being loaded in the tariff they offered to BSES for the bulk energy supplied to it by TPC.

The petitioner also pointed out that there was a clear government directive on the issue while producing as evidence the response of the state energy secretary on an application by the Shakti Insulated Wires Ltd in March 1998 where the company sought to change its power supply catered to by BSES to TPC.

"Responding to the application and another one moved by ICICI, which similarly sought to switchover to TPC from BSES the state energy secretary stated in a letter that the standing policy of the government is not to allow any such changeover of suppliers so that it ensure the efficient use of existing infrastructure and avoids duplication. This also facilitates the reduction of unnecessary expenditure for the licensees and therefore avoids the extra burden being imposed upon consumers," the petition states.

Despite this clear directive, BSES alleges in its petition that TPC continues to supply power to Shakti Insulated Wires.

"Similarly, TPC approached the Bombay Industries Association and the MIDC Marol Industries Association," BSES has further alleged.

The relief sought by BSES in the petition include the restrainment of TPC from selling electricity in the regions catered to by it, handing over to BSES all profits and gains made during January 1998 to the present day and placing a curb on TPC from providing any new connections to consumers.

The suburban electricity supplier has also sought the granting of the interim reliefs sought by it by pleading that otherwise its ability to subsidiswe residential consumers it caters to in Mumbai city at the rate of Rs 3.52 per unit would be eroded.