ATE rejects Tata Power’s petition challenging MERC’s order

Tata Power Company Ltd. | Power Generation/Distribution | Power | BSE: 500400 | NSE: TATAPOWER

26 Dec 2012 Evaluate

Tata Power has been barred from indulging in cherry-picking of Reliance Infrastructure’s consumers under the switch over process in Greater Mumbai. In a landmark order, the Appellate Tribunal on Electricity (ATE) has rejected Tata Power’s petition challenging Maharashtra Electricity Regulatory Commission's (MERC) order on imposing cross subsidy surcharge from high billing consumers, who have migrated from RInfra to TPC. Following this order, a little more than 300,000 consumers in Mumbai will have to shell out an additional charge ranging from three paise to 26 paise per unit, depending on the category they belong.

MERC, in its order delivered in August, pointed the ward-wise cherry picking by Tata Power Company was evident, especially single consumers from categories other than residential. MERC had observed though there were change-over consumers in surrounding areas, Tata Power had laid its network only for single consumers without laying one for the remaining change-over consumers in the surrounding area.

MERC had also directed Tata Power Company to conduct switch-overs only for those who consumed up to 300 units of electricity a month. However, MERC also clarified the restriction was limited to residential consumers for a year from the time the order was passed, and it would review the status of the switch-over and new connections added in identified areas during this period before deciding upon its strategy for the next year.