Tata Power, RInfra in verbal duel, again

Tata Power denies Supreme Court has dismissed its plea for stay on Appellate Tribunal Order

Tata Power and Reliance Infrastructure today renewed their verbal duel even as a case on the levy of cross-subsidy surcharge on Mumbai suburban consumers is yet to be heard in the Supreme Court.

A few days ago, the Supreme Court had admitted a prayer by Tata Power seeking interim relief from an Appellate Tribunal of Electricity (ATE) judgement in December last year. The tribunal had said that Tata Power's competitor, Reliance Infrastructure can claim a cross-subsidy surcharge as the former had a larger number of high-end customers. These large consumers, who pay more for power, should subsidise low-end customers.

The Supreme Court has asked the respondents of the case, ie Reliance Infrastructure as well as the Maharashtra Electricity Regulatory Commission (MERC) to file their counter affidavits in four weeks.

The two companies, however, issued press statements against each other today. “As is clearly evident from the said appeal, TPC wanted an ex-parte stay of the ATE judgment which upheld that cross subsidy surcharge is applicable to protect the interest of large numbers of low end residential consumers served by RInfra. However, the Hon'ble SC did not grant such prayers,” Reliance Infra said, in a press statement. The company also said that 2.2 million of its customers are releived of 'power shock'.

However, in its statement Tata Power said that Rinfra's interpretation is erroneous, disregarding the Supreme Court. “We strongly condemn and object to the incorrect news being spread by RInfra stating that the Supreme Court  has dismissed Tata Power’s plea for stay on Appellate Tribunal Order. The facts are that Honourable Supreme Court has admitted Tata Power’s appeal and has directed that notice be issued regarding interim relief for stay,” said Tata Power.

The competing utilities have earlier locked horns over many issues in the Mumbai power distribution. Tata Power had bagged a number of power subscribers in the Mumbai suburbs from Reliance Infrastructure. RInfra had claimed that Tata Power chooses to supply power only to large consumers who pay higher price for their power. As RInfra had lost many such large consumers, its low-end customers will have to shell out more for their power. Against this appeal, a cross-subsidy surcharge was granted, and Tata Power was asked not to 'cherry-pick' customers by the state regulatory authority.