ATE completes hearing, reserves order on Reliance discoms

The Appellate Tribunal on Electricity (ATE) today completed hearing in the case pertaining to revocation of power distribution licences of Reliance Infra controlled distribution companies (discoms) in the state by Odisha Electricity Regulatory Commission.

"The ATE has completed hearing in the case and has reserved its verdict," said a state official.

It may be noted that Reliance Infra had moved the ATE last month contesting the order of OERC to scrap the licences of its discoms. The ATE, however, had refused to grant a stay on the order.

In its March 4 order, state power regulator OERC had scrapped the licences of three Reliance Infra companies- North Eastern Electricity Supply Company of Odisha Ltd (Nesco), Western Electricity Supply Company of Odisha Ltd (Wesco) and Southern Electricity Supply Company of Odisha Ltd (Southco).

The licences were revoked under Section 19 (revocation of licence based in public interest) of the Electricity Act with immediate effect. The Central Services Office (CSO), umbrella organisation of Reliance Infra for power distribution operation in the state, was also disbanded. The licences were withdrawn on grounds of non-satisfactory performance, failure to contain steep aggregate technical & commercial (AT&C) losses and consistent defaults in payment of bulk power supply price.

As an interim arrangement, the regulator directed state-run power trader Gridco to take over the operation of these companies and appointed Hemant Sharma, the chairman cum managing director of Gridco as the administrator of the three utilities to avoid disruption in power supply operation in the state.