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Business News/ Companies / News/  ATE upholds MERC order on Reliance Infrastructure
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ATE upholds MERC order on Reliance Infrastructure

Matter relates to a battle between Reliance Infrastructure and Tata Power for a larger share of consumers in suburban Mumbai

Tata Power said Appellate Tribunal For Electricity’s order was a moral victory for it. Photo: Priyanka Parashar (Priyanka Parashar )Premium
Tata Power said Appellate Tribunal For Electricity’s order was a moral victory for it. Photo: Priyanka Parashar

(Priyanka Parashar )

Mumbai: The Appellate Tribunal For Electricity (ATE) has upheld the Maharashtra Electricity Regulatory Commission’s (MERC) September 2010 order, and refused to expunge the adverse remarks made by the regulator against Reliance Infrastructure Ltd (R-Infra).

The matter relates to a long battle between R-Infra and Tata Power Co. Ltd for a larger share of consumers in suburban Mumbai after the Supreme Court in July 2008 accepted Tata Power’s contention that it had a licence to distribute electricity across Mumbai.

Following this, Tata Power announced its decision to withdraw 762 MW power it was supplying to R-Infra without any formal power purchase agreement between the two parties. The R-Infra challenged, Tata Power’s decision before the MERC.

MERC in its September 2010 order had said, “R-Infra has been repeatedly directed by the Commission to take all necessary steps to contract for the necessary power requirement expeditiously, in a manner that results into low power purchase rate, either through the competitive bidding process or bilateral contracts, in order to safeguard consumer interest."

Subsequently, R-Infra moved ATE demanding the removal of this and many other observations by MERC against it. However, while disposing R-Infra’s petition in its 17 April order, ATE observed, “We do not agree with the contention of the appellant that the impugned observations have been made by the State Commission without any basis as there are enough materials."

R-Infra’s rival Tata Power Co. Ltd said ATE’s order was a “moral victory" for it.

“Even though R-lnfra had sought to challenge MERC’s order where Tata Power was a party, it deliberately chose not to make Tata Power a party before ATE. Tata Power had to specifically apply to become a party and bring all relevant facts to light. ATE also commented on the conduct of R-Infra in not making Tata Power a party to the appeal proceedings despite making extensive allegations in the appeal against Tata Power," the company said in a statement on Monday.

“Tata Power, after agreeing in writing, suddenly withdrew power meant for R-Infra’s Mumbai consumers," an R-Infra spokesman countered in an emailed statement.

Until July 2008, R-Infra and its predecessor, the Bombay Suburban Electric Supply Co. Ltd, had a monopoly over power supply in suburban Mumbai--areas between Bandra and Bhyander on the western side and Kurla and Bhandup and Kurla and Mankhurd on the Eastern front.

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Published: 22 Apr 2013, 11:15 PM IST
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