Tata Power may challenge ATE ruling

MUMBAI: TATA Power Company is likely to challenge an order by the Appellate Tribunal for Electricity (ATE), which directed the Mumbai-based power utility to refund Rs 354 crore that Reliance Energy (REL) had paid it earlier as stand-by charges for electricity supply in Mumbai city and suburbs.

A TPC spokesperson said the company is considering to go in for an appeal against the order in the Supreme Court. He said MERC, in its earlier order dated May 31, 2004, had permitted appropriations to the tune of Rs 365 crore out of the statutory reserves of Tata Power towards standby charges.

The issue relates to sharing of standby charges of Rs 33 crore per month payable to Maharashtra State Electricity Board.

The ATE has ruled that for the 6-year period — starting from FY99 to FY04, TPC is required to refund REL is Rs 354 crore within a period of 30 days. ATE in its order has decided the share of Tata Power to be about 77% and of REL to be about 23% of the total standby charge.


The matter was decided after judicial member justice E Padmanabhan ruled in REL’s favour after a bench comprising technical member AA Khan and tribunal chairman justice Anil Dev Singh gave different rulings on the issue. The apex court, which is currently closed for winter vacations, is already hearing two appeals by Tata Power against the decisions of ATE, which ruled in favour of REL.