Tata Power files petition against Maha Discom

MUMBAI: Tata Power (TPC) has filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) against the Maharashtra State Electricity Distribution Company’s (Maha Discom’s) move seeking the regulator’s help to recover around Rs 80 crore from it, sources told ET.

On Tuesday, Maha Discom had claimed that TPC owes this amount for the net energy drawn by the state-owned distribution utility. In a letter to MERC, Maha Discom had urged the regulator to direct TPC to immediately pay up the outstanding amount for Januay and February with an interest of 18% per annum.

TPC sources however said that Maha Discom’s move was against the interest of Mumbai consumers who would be paying higher charges, when they are already paying for standby power for over several decades as reliable charges approved by MERC.

“The standby arrangement is an assurance, where a premium is paid and in case of the agreed event, MSEB is required to supply power at the agreed cost. The cost of standby power is fixed by MERC and the standby charges are passed on to the consumers in Mumbai,” TPC sources said.

TPC has a standby agreement with MSEB to supply uninterrupted power to the consumers Mumbai in case of any shortfall/shutdown/outage at the generating units. Tata Power can draw power from MSEB to fulfil the required deficit, company sources said.

“Under this agreement, MSEB is expected to charge Rs 2.99 and fuel adjustment charges per unit for power drawn as standby. However, Maha Discom has raised a bill on Tata Power with a per unit cost of Rs 6 for January and February 2007,” sources said.