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MIAL complains to MERC over R-Infra

Press Trust Of India  |  Mumbai 

The Mumbai International Airport Ltd (MIAL) has complained to the state electricity regulator that Reliance Infra was forcing it to cross-subsidise its customers even after MIAL switched to Tata Power Company for power supply.

The company has argued that R-Infra cannot make such a demand and it is legally not tenable.

During a public hearing before Maharashtra Electricity Regulatory Commission on Saturday, MIAL said since it was availing electricity from Tata Power by utilising the wire network of R-Infra, the latter was forcing it to cross-subsidise its customers, though it is no longer the customer of R-Infra.

“Any attempt to load the change-over consumers with the purported cross-subsidy losses, which it may incur due to migration of its subsidising consumers, effectively fetters the right of the consumers to exercise their choice and make them captive consumers of R-Infra, whose interest are then necessarily aligned to that of R-Infra,” MIAL argued.

It also said that no cross subsidy charge could be levied upon MIAL to meet the current level of cross-subsidy in the utility’s licence area.

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First Published: Mon, July 05 2010. 00:23 IST