APTEL quashes RInfra's appeal against MERC order

The Appellate Tribunal for Electricity (APTEL) has quashed Reliance Infrastructure's appeal against the adverse remarks made by the Maharashtra Electricity Regulatory Commission (MERC).

Reliance Infrastructure had filed an appeal with APTEL challenging certain adverse remarks made against the company by the state commission stating that those remarks were baseless.

APTEL in an April 17 order upheld diverse adverse remarks and findings against RInfra's conduct as a distribution licensee that were earlier made by MERC.

The state commission, in its order last year, had said that Reliance Infrastructure's lack of planning of its power procurement requirement and for not contracting for adequate capacity are some of the reasons for responsible for the tariff situation in Mumbai.

"We do not agree with the contention of the Appellant (RInfra) that the impugned observations have been made by the State Commission without any basis as there are enough materials," APTEL said in its order.

Commenting on the order, RInfra in a statement said: "Tata Power after agreeing in writing, suddenly withdrew power meant for RInfra's Mumbai consumers. RInfra power purchase cost lower than TPC during the entire business plan period as approved by MERC."

Tata Power in its statement added that, "The judgement passed by APTEL yet again vindicates Tata Power's contention that RInfra consumers were facing high tariff due to RInfra's failure to discharge its obligation as a discom to procure power at reasonable rates and provide competitive consumer services."

MERC had referred to several occasions in the past where it had directed RInfra to take steps to procure power in a timely  manner to meet the demand of its consumers, it said.

APTEL observed that MERC followed the directions of the High Court by considering the issues, independent of the Government Memorandum.

It also said that the State Commission after analysing the materials as well as the opinion and suggestions offered by the Competition Commission, that "since the issues raised by RInfra in the said proceedings as against the Tata Power Company have already been considered and settled by the Supreme Court...

...There was no justification for dealing with the said issues again as there was no necessity to reopen those issues again."

"In view of our findings, we do not find merit in this Appeal. Hence, the Appeal is dismissed. However, there is no order as to cost."