RInfra appeals against power regulator order

RInfra has filed an appeal against the Maharashtra Electricity Regulatory Commission’s (MERC) order allowing Tata Power Company (TPC) to sell 100 Mw power to the Tata group’s power trading arm, Tata Power Trading Company Ltd (TPTCL). The case will come up for hearing before the Appelate Tribunal for Electricity (ATE) on November 10.

Rinfra, in its petition before ATE, claimed that the MERC allowed TPC to carry out a one-time expansion of up to 50 per cent of existing capacity without competitive bidding. The tariff order passed by the MERC for this new unit in April was on the premise that the power generated would be distributed in Mumbai.

TPC, in its tariff petition for 2008-09, clearly mentioned that out of 250 Mw generated from the unit, 100 Mw will be allocated to Brihanmumbai Electric Supply and Transport (BEST), which supplies power to the island city, 50 MW will be for TPC’s own use and 100 Mw will be allocated to RInfra. TPC supplies power to bulk consumers like railways, airports, water work facilities, etc, while RInfra supplies to suburban Mumbai.

When contracted, a TPC spokesperson said, “It is the distribution licensee’s obligation to secure power for its consumers and as there is no PPA (power purchase agreement) between TPC and RInfra, as per the MERC’s directives, TPC has committed 100 Mw of power to TPTCL”.

However RInfra received a letter earlier this year dated December 31st, 2007, from TPC, in which the latter informed that it had allocated 100 Mw power to some other parties. RInfra immediately informed TPC.