ATE quashes interim applications of Reliance Infrastructure

In a jolt to Reliance Infrastructure controlled distribution companies (discoms), the Appellate Tribunal on Electricity (ATE) today quashed two interim applications filed with the tribunal.

Reliance Infra had filed two applications, challenging the order of Odisha Electricity Regulatory Commission (OERC) to rest management and control of its three distribution utilities - Nesco, Wesco and Southco along with the assets and interests with Gridco's chairman and managing director (CMD).

"The ATE found no merit in the interim applications filed by Reliance Infra and hence dismissed them. The final order on revocation of licenses stands reserved," said a government official with knowledge of the matter.

Apart from filing these interim applications, Reliance Infra had also challenged the order of OERC to revoke licenses of its discoms with the ATE in March this year. The ATE has completed hearing in the case and has reserved its verdict.

In its March 4 order, state power regulator OERC had scrapped the licenses 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 licenses were revoked under Section 19 (revocation of licence based in public interest) of the Electricity Act, 2003 with immediate effect.

The Central Services Office (CSO), umbrella organisation of Reliance Infra for power distribution operation in the state, was also disbanded. The licenses were withdrawn on grounds of non-satisfactory performance, failure to contain steep aggregate technical & commercial (AT&C) losses and consistent defaults in payment of bulk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.

In its order, OERC held that the Gridco CMD would manage electricity supply activities in the revoked license area of Nesco, Wesco and Southco till further orders of the commission. The Gridco CMD has been designated as the administrator of the three utilities under the supervisory control of principal secretary (energy), Odisha.