The Orissa Electricity Regulatory Commission (OERC) has allowed 3 more weeks to the Orissa government and Gridco to file their response on the reply submitted by Reliance Energy Ltd.(REL) on the notice served by the commission pertaining to the revocation of license.
While the state government and Gridco sought 4 weeks time for filing the response, OERC allowed 3 weeks time to both. The next hearing of the matter is slated on 15 May 2009, sources said.
OERC is hearing a petition filed by Sarat Mohanty, General Secretary, All Orissa Electricity Workers Federation, for revocation of license given to the three power distribution companies owned by Reliance Energy Ltd.
In the petition filed before OERC on 3 September 2005, Mohanty stated that the REL owned power distribution companies, namely Wesco, Nesco and Southco, have violated the conditions of license.
It pointed out the failure of the company to infuse capital, failure to appoint adequate manpower, absence of guidelines for transfer, failure to provide counterpart funding in respect of APDRP scheme, lack of maintenance of lines, absence of upgrade of transformers, power supply for LT load , refusal of REL to renew the shareholders’ agreement signed on 1 April 1999 and failure to bring down the transmission and distribution losses.
Based on the petition, OERC served show cause notice to REL on 27 January 2006 as to why its license will not be suspended under section 24 of the Electricity Act 2003. It also appointed special officers to oversee the operation of the distribution companies and to file report on the activity and management of distribution companies.
However, this order was contested by REL in the Appellate Tribunal for Electricity (ATE) and the tribunal set aside the order of OERC following which OERC moved the Supreme Court.
While Supreme Court held the order pertaining to the suspension of the license as valid, it struck down the order pertaining to the appointment of special officers.
It also directed OERC to re-hear the case and REL was directed to file its reply to the show cause notice issued by OERC on 27 January 2006.Subsequent to this, REL has submitted the reply to OERC and the Commission is hearing the matter
