Tata Power takes recourse to MERC against Maha Discom

03 May 2007

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.

Maha Discom earlier on Tuesday, claimed that TPC owed 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 January and February with an interest of 18 pc per annum.

TPC sources said 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.

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 fulfill the required deficit and is expected to charge Rs2.99 and fuel adjustment charges per unit for power drawn as standby.

However, sources said Maha Discom has raised a bill on Tata Power with a per unit cost of Rs6 for January and February 2007.