SC stays order against PPA between Tata & BEST
The Supreme Court on Wednesday stayed an order by Appellate Tribunal for Electricity, which set aside the Maharashtra Electricity Regulatory Commission’s (MERC) approval of the power purchase agreement between Tata Power and the Brihanmumbai Elect...
By TNN |
MUMBAI: The Supreme Court on Wednesday stayed an order by Appellate Tribunal for Electricity, which set aside the Maharashtra Electricity Regulatory Commission���s (MERC) approval of the power purchase agreement between Tata Power and the Brihanmumbai Electricity Supply and Transport (BEST).
Tata Power had moved the apex court challenging the tribunal���s order. A two-member bench of the Supreme Court, which admitted the case on Wednesday, has given the stay till further hearing. The date of the next hearing has not been fixed.
Last week, the tribunal had directed MERC that it should look at power distribution depending on the requirement of utilities. The tribunal had also set aside the MERC order, dated November 6, 2007, wherein the commission approved of the power purchase agreement (PPA) between Tata Power and BEST.
Reliance Energy had challenged MERC���s approval of PPA that allowed Tata Power to allot 800 mw to BEST and only 500 mw to REL last year.
The commission had also approved another PPA for 477 mw between TPC Generation and Tata Power Distribution. REL challenged the MERC order which had ruled against its argument of equitable distribution of power among the various utilities.
REL���s bone of contention was that MERC���s approval would push it to a shortfall situation of at least 150 mw. The shortfall may go up to 250 mw in the peak hours. REL needs 1,400 mw of power on an average day whereas it generates only 500 mw. It buys nearly 750 mw from Tata Power Generation. REL argued that MERC should have thought about the impact of the PPA on its consumers before approving it.
Tata Power had moved the apex court challenging the tribunal���s order. A two-member bench of the Supreme Court, which admitted the case on Wednesday, has given the stay till further hearing. The date of the next hearing has not been fixed.
Last week, the tribunal had directed MERC that it should look at power distribution depending on the requirement of utilities. The tribunal had also set aside the MERC order, dated November 6, 2007, wherein the commission approved of the power purchase agreement (PPA) between Tata Power and BEST.
Reliance Energy had challenged MERC���s approval of PPA that allowed Tata Power to allot 800 mw to BEST and only 500 mw to REL last year.
The commission had also approved another PPA for 477 mw between TPC Generation and Tata Power Distribution. REL challenged the MERC order which had ruled against its argument of equitable distribution of power among the various utilities.
REL���s bone of contention was that MERC���s approval would push it to a shortfall situation of at least 150 mw. The shortfall may go up to 250 mw in the peak hours. REL needs 1,400 mw of power on an average day whereas it generates only 500 mw. It buys nearly 750 mw from Tata Power Generation. REL argued that MERC should have thought about the impact of the PPA on its consumers before approving it.
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The tribunal, last week, said that the commission ought to have considered the claim of REL for allocation of power while approving the PPA. It has also agreed to REL���s contention that in exercising the powers conferred to it under the Electricity Act 2003, MERC can regulate power procurement process between generating companies and the distribution licensees for securing equitable distribution.Download
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