Power utilities to knock at MERC door again

MUMBAI: The Maharashtra Electricity Regulatory Commission (MERC) has asked Tata Power Company (TPC), Reliance Energy (REL) and Maharashtra State Electricity Distribution Company (MSEDC) to revise their respective applications to the commission regarding their plans to secure more distribution licences in Mumbai and rest of the state. The MERC said the companies failed to submit their investment and network rollout plans for the next five years.

TPC had asked for distribution licences in various circles such as Bhandup, Vashi, Kalyan, Dombivli, Ulhasnagar, Shahad, Khopoli, Lonavala, Nasik 1 and 2 (urban) divisions and Pune (urban) zone. REL’s interest lies in the areas covered by Brihanmumbai Electric Supply and Transport Undertaking (BEST), broadly from Colaba to Mahim, including Sion.

They had filed application for licences in Nashik 1 and 2 divisions, Aurangabad (urban) circle, Nagpur (urban) zone, Pune (urban) zone, and Vashi and Bhandup circles as well.

MSEDC, the distribution arm of erstwhile Maharashtra State Electricity Board (MSEB), had requested for a grant of five distribution licences for the areas of Aarey Milk Colony, Dindoshi, Yash Dham, Gokul Dham, Nagari, Niwara Parisar, Goregaon-Vikhroli link Road, Sainath Nagar, Saigal Wadi, Chetna Nagar, Hiranandani (Powai), Lok Gaurav, Suyog Industrial Estate, Ansa Industrial Estate and Raheja Vihar.

These distribution companies had submitted their applications in 2003, soon after the Electricity Act was enacted. They had contended in their applications before the MERC that the Section 14 of the Electricity Act, 2003, allowed the grant of licence to 2 or more persons for distribution of electricity through their own distribution system within the same area subject to the applicant complying with certain eligibility requirement as prescribed by the central government.

While many favour a competitive environment here so that electricity charge comes down, a few, including Prayas, an NGO from Pune, had sought detailed investment and financing plan as well as business plan from the distribution company.

It also submitted to the MERC that TPC’s application for parallel distribution licence was premature and unwarranted as the regulations governing tariff guidelines and National Electricity Policy were yet to be finalised.