SC breather for Tata Power

The Supreme Court today gave a much-needed reprieve to Tata Power Company which supplies power to distributors "" Reliance Energy and BEST "" and some retail customers like the Bhabha Atomic Research Centre and the railways.

The apex court stayed a show cause notice issued by the Maharashtra's Electricity Regulatory Commission (MERC) on August 16 to Tata Power, asking why an administrator should not be appointed on the company for alleged violation of an Appellate Tribunal Electricity (ATE) order banning the company from supplying power to all bulk customers except Reliance Energy and BEST.

In an interim order, the court permitted Tata Power to continue supplying power to its existing retail consumers, numbering about 25,000, and has also permitted the company to connect to new consumers.

Reliance Energy had raised the issue of Tata Power supplying power to retail customers in areas where retail distribution licensees were operating with the Maharashtra electricity regulator.

The commission had ruled in favour of Tata Power, allowing them to supply power to retail bulk customers. Reliance had then appealed to the ATE.