Tata Power moves MERC on supply rights

Insists on the right to prioritise for own consumers.Tata Power has approached the Maharashtra Electricity Regulatory Commission (MERC) against the State Load Despatch Centre’s (SLDC’s) refusal to schedule 160 megawatts (Mw) of power to its distribution company, Tata Power Distribution.

MERC Chairman VP Raja confirmed the development and said it had convened a hearing on June 24.

The recent move by Tata Power came on the heels of the Bombay High Court’s refusal to set aside the state government’s advice and the recommendations of a five-member committee that Tata Power should continue to supply 360 Mw to Reliance Infrastructure (R-Infra) at the regulated rate of Rs 3.70-4.40 per unit till June and 200 Mw from July to March next year at the regulated rate.

Tata Power sources told that it had sought MERC’s directive for the scheduling of 160 Mw to its distribution company. The company had called upon SLDC to schedule 160 Mw of the 360 Mw supplied to R-Infra to its distribution company from May 16 midnight. However, SLDC refused to do so, saying the state government has asked it to maintain status quo till it receives instructions from MERC.

However, Tata Power submitted that even though SLDC did not agree for scheduling open access of 160 Mw to Tata Power Distribution, the latter had recognised 100 Mw contracted by it with the Brihanmumbai Electric Supply &Transport Undertaking. According to the company, it has scheduled 160 Mw on the basis of contracts signed with Tata Power Distribution. The open access for this transaction has been approved and granted by SLDC.

Moreover, Tata Power argued that once the contract between the power generator/trader and distribution company was in place, SLDC had no discretion in the matter, but to schedule the power in terms of such contract. SLDC as an independent authority under the Electricity Act, 2003 was not required to take any direction from any senior authority in the matter of scheduling, it argued.