Interesting move in Tata power-R-Infra controversy: Tata Power threatens legal action

Two days after the State Load Dispatch Centre’s (SLDC) refused to heed Tata Power Company’s (TPC) decision and schedule 160 Mw power to TPC’s distribution unit, a belligerent TPC has questioned SLDC’s role as an independent body. TPC has urged SLDC to rethink their refusal else face legal action.

TPC had last week announced it was withdrawing 160MW power as required for their new consumers from Sunday and not from June 30 as suggested by a state appointed-committee. The 160MW was among 360MW being supplied to Reliance Infrastructure (RInfra). SLDC had refused to schedule the power saying the matter had been referred by the state government to Maharashtra Electricity Regulatory Commission (MERC).

In a letter threatening legal action (DNA has a copy), TPC has said that SLDC’s refusal to schedule these power on purported advice from a “senior authority” clear infringes the role as laid down under section 32 of the Electricity Act. Section 32 says SLDC is responsible for optimum scheduling and dispatch of electricity within a state in accordance with the contracts entered with the licencees or generating companies operating in that state.

“In TPC’s case, the 160 Mw power was scheduled on the basis of contracts with TPC - distribution through TPC’s trading company. Open access for this transaction has also been duly approved and granted. Once the contract between the generator / trader and the distribution company is in place, SLDC has no discretion in the matter but schedule the power in terms of contract. Being a independent body, SLDC is not required to take any directions from a “senior authority’’ in the matter of scheduling,’’ V R Shrikhande, deputy general manager of TPC has said in his letter.

TPC says SLDC’s refusal has resulted in TPC-distribution suffering an additional burden of Rs 60 lakh per day and which will have to be borne by their consumers. “The failure to carry out their duty means SLDC would also be liable to compensate this amount,’’ Shirkhande has warned.

Senior state government officials say TPC’s anger against SLDC is justified. “In normal situations, SLDC would be scheduled power as decided by the generating power. But, not in this case when one company (TPC) is in a dominant situation. If the power had been scheduled, RInfra consumers would have been affected,’’ said a senior official. The state energy department will reply to SLDC and who in turn reply to TPC on the issue