R-Infra may accept Tata Power's offer

Reliance Infrastructure may accept Tata Power’s proposal to take over 4,00,000 of its customers in the city, with a monthly consumption of less than 100 units each, from July till March next year (when the contracts between the two would be re-negotiated).

Tata Power had offered this as a compromise to its earlier demand to be allowed to stop all electricity supply to R-Infra. The latter procures nearly 650-700 Mw from the open market at a per-unit price of Rs 6.50-7. If the company agrees to hand over 4,00,000 customers to Tata Power, its requirement would fall by 200 Mw.

R-Infra is expected to formally send its reply within a day or two to Tata Power and the state government, which is trying to maintain status quo on supply and price in the tussle between the two rivals. R-Infra sources said the company was preparing its reply.

Sources in the know told Business Standard, “Reliance Infrastructure is prepared to accept Tata Power’s proposal. However, the company wants that the mechanism of such a transfer of its consumers be determined by the Maharashtra Electricity Regulatory Commission (MERC). The company is also keen that MERC should settle the issue of differential rates of wheeling charges (transmission costs of passing on the supply) payable by consumers.”

Before the current standoff, 30,000-odd consumers of R-Infra were shifted to Tata Power following a court order and a transfer mechanism cleared by MERC.