MERC notice to Tata Power on petitions

Customer migration explanation sought

The Maharashtra Electricity Regulatory Commission (MERC) has issued a notice to the Tata Power Company after it received representations from several organisations and individual consumers on alleged non-compliance of its order with regard to Universal Service Obligations (USO) and migration of consumers who consume electricity up to 300 units.

“In view of the circumstances, it is necessary and expedient to hear Tata Power Company on any explanation that it desires to offer on these written representations,” MERC Chairman V P Raja told Business Standard.

MERC has convened the hearing on January 31 and asked Tata Power to file an explanation through an affidavit at least a week prior to the hearing.

MERC had received representations pertaining to its order of August 23 last year, where it had directed Tata Power not to cherry-pick

Reliance Infrastructure consumers. MERC had allowed a changeover only for consumers consuming electricity up to 300 units a month.

“Yes, there is a MERC hearing. This is vested interest at play and we thank these vested interest parties for having mobilised the customer shift to Tata Power. We welcome all such customers whose letters have been made to reach MERC to join Tata Power services. We suggest all customers interested in Tata Power Distribution services walk into the nearest Tata Power customer care centre to complete the documentation and we will arrange to change them over the next seven days, subject to the incumbent’s clearance," said a Tata Power spokesman.

However, consumer representatives complained to MERC about delays in the completion of necessary formalities for a changeover.

The Appellate Tribunal on Electricity (ATE) in its order delivered in December had rejected Tata Power’s plea challenging MERC’s order. ATE upheld MERC’s order against cherry-picking and also its directive to levy a cross- subsidy surcharge on change-over consumers.

ATE reaffirmed the need to prevent Tata Power emerging as a monopoly and thus protecting healthy competition.