Surat civic body challenges power tariff hike proposal

The Surat Municipal Corporation (SMC) fought tooth and nail Torrent Power Ltd's (TPL) proposal for hiking the power tariff at a case hearing conducted at Gujarat Electricity Regulatory Commission (GERC) on Saturday.

Torrent Power had submitted a 239-page petition to Gujarat Electricity Regulatory Commission (GERC), requesting a early hike this year. On May 7, GERC asked for suggestions, and objections to the proposed hike through a public petition.

The GERC scheduled a three-day hearing to the objections from July 20. Saturday was the last day for the hearing wherein SMC, a major customer of TPL, took Torrent to task. TPL supplies power to three cities in Gujarat "" Ahmedabad, Gandhinagar and Surat.

SMC challenged the legality of TPL for hiking the power tariff in Surat, a separate licensee area. SMC demanded to know when the right to supply power was given to Torrent Power SEC Ltd, a separate entity in itself.

After the amalgamation of the three companies, Torrent Power SEC Ltd, Torrent Power AEC Ltd and Torrent Power Generation Ltd into one company as Torrent Power Ltd (TPL), it does not mean the merger or amalgamation of licensee for supply of electricity of separate licensee areas into one licensee.

Surat Municipal Corporation urged that the amalgamation of the three Torrent companies into one does not mean the merger of separate licences issued by the commission.

Gujarat High Court had recently delivered a judgement on the amalgamation of three Torrent entity into one "" TPL. But it said: "The two (companies) need to transfer to the new company, but two licences will remain independent and there will be no change in the condition of the licence."

"Thus even the court is of the view that even after the amalgamation of the three..., the licences are not merged... and stood separate," said SMC while interpreting the judgement of the high court.

Replying to the SMC, TPL said with the effect of the scheme of amalgamation, the undertaking of transferee companies, all assets including licence is transferred to TPL.

The company tried to justify the stand of the TPL that high court's judgement is binding on us and all unless the judgement is challenged and is upset.