Tata Power is expected to spend Rs 1,600 crore on the project. So far, it has spent Rs 400 crore. While granting the distribution licence from August 2014 for 25 years, the regulator had asked the power company to give a network plan, especially as it was moving to increase its consumer base. At present, it has 600,000 consumers and the company has to use the network of competitor Reliance Infrastructure (RInfra) for supply.
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A Tata Power spokesperson told this newspaper, “Any investment in network roll-out without customer demand may remain underutilised, which is not in the interest of the consumers. Network should be developed based on consumer demand.”
“The committee has attempted to remove choice of consumers and to reduce distribution companies to investors by recommending institutional mechanisms to micro-manage the distribution companies. It is important that customer choice not be compromised and distribution companies should be free to manage the consumer load in and efficient and economic manner.”
However, the RInfra spokesman said the four-member committee has given recommendations on the network roll-out plan of Tata Power based on the principles laid down by the APTEL judgment and interim order of MERC. “The committee has recommended that any new network to be laid by RInfra and Tata Power would be based on cost economics of both the utilities, thereby, lowering the burden of wheeling charges on the consumers of suburban Mumbai,” he added.