BSES seeks approval to diversify power source

The Reliance group power arm BSES is planning to diversify its source of power. The company has applied to the state power regulator, the Maharashtra Electricity Regulatory Commission (MERC), seeking open access on Maharashtra State Electricity Board's and Tata Power Company's transmission and associated facilities.

At present, apart from its own 500 mw plant at Dahanu, BSES buys power from Tata Power Company to cater to its licensed areas in Mumbai. The move could have a strong impact on Tata Power's revenues.

"The open access on transmission lines of MSEB and Tata Power Company will enable BSES to source power from other suppliers, thereby optimising the cost of procurement of power and benefiting the company's over 2.2 million consumers in Mumbai," the company said in a media release.

The move comes in the face of the passage of the Electricity Act 2003 which enables companies to seek open access on facilities (primarily transmission lines) of state electricity boards and rival companies for the payment of a fee to be fixed by the power regulator.

BSES and Tata Power have been locking horns for years on the issue of standby charges.

The Act enables companies to distribute power in areas which were previously earmarked for the boards or other competing companies, subject to approval from regulators.

BSES has filed for licences to distribute power in MSEB areas like Nashik I and II divisions (urban), Aurangabad circle, Nagpur (urban) zone, Pune urban zone, besides Vashi and Bhandup circles.

The company has also applied for grant of distribution licence (using its own distribution system) in Brihan Mumbai Electric Supply & Undertaking area in Mumbai.

The company has also filed for the grant of a distribution licence in New Delhi Municipal Corporation's area of supply. It associate company Reliance Energy Trading has secured a provisional clearance from the Central Electricity Regulatory Commission (CERC) for carrying out inter-state energy trading.