1 Public Hearing Presentation Reliance Energy Limiteds Multi Year Tariff (MYT) Petition MERC Case...

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Public Hearing PresentationPublic Hearing PresentationReliance Energy Limited’s Reliance Energy Limited’s

Multi Year Tariff (MYT) Petition Multi Year Tariff (MYT) Petition

MERC Case Nos. 73, 74 & 75 of 2006MERC Case Nos. 73, 74 & 75 of 20062121stst March, 2007 March, 2007

byby

Sandeep N. OhriSandeep N. OhriM.Com, CA.M.Com, CA.

Member, Bombay Small Scale Industries AssociationMember, Bombay Small Scale Industries [email protected]@yahoo.co.in

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EndorsementsEndorsements Submission/Prayers endorsed by Submission/Prayers endorsed by Bombay Small Bombay Small

Scale Industries AssociationScale Industries Association Regd Association (7000+ members), Non-profit, Non-Regd Association (7000+ members), Non-profit, Non-

political, NGO, Approved by the Ministry of SSI political, NGO, Approved by the Ministry of SSI

Also by other Industrial Estates (2500+ units)Also by other Industrial Estates (2500+ units) Guru Gobind Singh (130) Guru Gobind Singh (130) Shreyas (174)Shreyas (174) New Satguru Nanik (100) New Satguru Nanik (100) Universal (98)Universal (98) Bombay Talkies (850)Bombay Talkies (850) Satguru (150)Satguru (150) Mittal (250)Mittal (250) Sidhpura (50)Sidhpura (50) Laxmi (350)Laxmi (350) Ghatkopar (110)Ghatkopar (110) Virwani (350)Virwani (350) Sainath 1&2 (55)Sainath 1&2 (55) Mungekar (55)Mungekar (55) Bhola Bhagwan (56)Bhola Bhagwan (56) Jai Bonanza (450)Jai Bonanza (450) Majethia (50)Majethia (50) Shah (85)Shah (85) Shivaji (25)Shivaji (25) Balaji (28)Balaji (28) Sharma (35)Sharma (35)

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EndorsementsEndorsements

Presenting on behalf of Presenting on behalf of H-West Ward H-West Ward (Khar) Resident’s Association(Khar) Resident’s Association having having lakhs of consumerslakhs of consumers

Presenter is also the Moderator of Presenter is also the Moderator of “bijlee” – a discussion eGroup at “bijlee” – a discussion eGroup at YahooGroupsYahooGroups

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Tariff Fixing ProceduresTariff Fixing Procedures

The State Commission to determine the TariffThe State Commission to determine the Tariff Section 86 (1) (a)Section 86 (1) (a)

Tariff CANNOT be fixed without “considering all Tariff CANNOT be fixed without “considering all suggestions and objections received from the suggestions and objections received from the public” public” Section 64 (3)Section 64 (3)

Tariff fixing has to involve “safeguarding of Tariff fixing has to involve “safeguarding of consumers’ interest”consumers’ interest” Section 64 (1) (d)Section 64 (1) (d)

The Commission “shall ensure transparency while The Commission “shall ensure transparency while exercising its powers and discharging its functions”exercising its powers and discharging its functions” Section 86 (3)Section 86 (3)

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The The License Assignment License Assignment

IssueIssue

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The Suburban LicenseThe Suburban License

The License for the Mumbai Suburban The License for the Mumbai Suburban area is called “The Bombay Suburban area is called “The Bombay Suburban Electric License, 1926”Electric License, 1926”

It was granted to M/s Killick, Nixon & It was granted to M/s Killick, Nixon & Company and M/s Callender’s Cable & Company and M/s Callender’s Cable & Construction Company Limited on Construction Company Limited on 2929thth May, 1926 May, 1926

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1926: The License1926: The License

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1930: The Assignment1930: The Assignment

Assigned to “The Bombay Suburban Assigned to “The Bombay Suburban Electric Supply Company Limited” on Electric Supply Company Limited” on 1313thth May, 1930 May, 1930

New company formed just to take over New company formed just to take over the whole operation of the old businessthe whole operation of the old business

Condition imposed by Government: Condition imposed by Government: No future assignment was allowed, without No future assignment was allowed, without

prior written permissionprior written permission

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The Assignment ConditionThe Assignment Condition

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Other ConditionsOther Conditions

““At any time after commencement of this License, At any time after commencement of this License, the Licensee may, the Licensee may, with the previous consent in with the previous consent in writingwriting from the Government and subject to the from the Government and subject to the compliance with such conditions upon which such compliance with such conditions upon which such consent may be given, consent may be given, assign this License, and assign this License, and transfer the wholetransfer the whole of their undertaking...” of their undertaking...” Clause 14, Bombay Suburban Electric License, 1926 Clause 14, Bombay Suburban Electric License, 1926

““No licensee shall at any time assign his licenseNo licensee shall at any time assign his license or or transfer his utility, or any part thereof, by sale, lease, transfer his utility, or any part thereof, by sale, lease, exchange or otherwise exchange or otherwise without the prior approvalwithout the prior approval of of the Appropriate Commission” the Appropriate Commission” Section 17 (3), Electricity Act, 2003Section 17 (3), Electricity Act, 2003

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Other ConditionsOther Conditions

The Licensee may do “other business,” only The Licensee may do “other business,” only

with prior intimation to the Commission with prior intimation to the Commission

Electricity business must not subsidise other Electricity business must not subsidise other

businessbusiness Section 51, Electricity Act, 2003Section 51, Electricity Act, 2003

One-third of the profit of such “other One-third of the profit of such “other

business” to be deducted from ARR of business” to be deducted from ARR of

Electricity businessElectricity business Regulation 79.1, MERC Tariff Regulations, 2005Regulation 79.1, MERC Tariff Regulations, 2005

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1992: Name changes to BSES1992: Name changes to BSES

““Bombay Suburban Electric Supply Co Bombay Suburban Electric Supply Co

Ltd” changes it’s name to Ltd” changes it’s name to “BSES Ltd”“BSES Ltd”

on 23on 23rdrd December, 1992 December, 1992

The (undivided) Reliance Group starts The (undivided) Reliance Group starts

buying into BSESbuying into BSES

New business areas envisaged: Telecom, New business areas envisaged: Telecom,

Infrastructure, etc.Infrastructure, etc.

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2004: Another Change2004: Another Change

BSES Ltd changes its name to BSES Ltd changes its name to “Reliance “Reliance

Energy Ltd”Energy Ltd” on 24 on 24thth February, 2004 February, 2004

Not just change of name – this time Not just change of name – this time

ownership changesownership changes Reliance “takeover” of BSES is now completeReliance “takeover” of BSES is now complete

Piecemeal takeover took 12 years (1992-2004)Piecemeal takeover took 12 years (1992-2004)

Other Businesses: Metro Rail, Highway Other Businesses: Metro Rail, Highway

Construction, Direct-to-Home Satellite TV Construction, Direct-to-Home Satellite TV

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REL’s contentionREL’s contention

““Mere change in nameMere change in name in terms of the in terms of the

provisions of the provisions of the Companies ActCompanies Act, 1956 , 1956

has no other legal implication and that, has no other legal implication and that,

the the entity remaining otherwise the entity remaining otherwise the

same,same, no fresh issue of License … is no fresh issue of License … is

required..”required..” MERC Order, Case No 18 of 2003 dt 1.7.2004MERC Order, Case No 18 of 2003 dt 1.7.2004

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But the Law is Very Clear !But the Law is Very Clear !

Section 616 (c) of the Companies Act, 1956Section 616 (c) of the Companies Act, 1956 The Electricity Act supercedes the Companies Act, The Electricity Act supercedes the Companies Act,

if there is a conflict if there is a conflict

Sections 173 & 174 of the Electricity Act, 2003Sections 173 & 174 of the Electricity Act, 2003 The Electricity Act has an over-riding effect on the The Electricity Act has an over-riding effect on the

Companies ActCompanies Act

Even though Companies Act permits transfer Even though Companies Act permits transfer of rights on change of name, the Electricity of rights on change of name, the Electricity Act needs an application for License transferAct needs an application for License transfer In this case, NO transfer was ever asked for, nor In this case, NO transfer was ever asked for, nor

ever done!!ever done!!

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Replies Received Under RTIReplies Received Under RTI

No separate License issued to RELNo separate License issued to REL Hon’ble MERC, Oct 2005Hon’ble MERC, Oct 2005

License stands in the name of License stands in the name of “Bombay Suburban…” (original co.) ... “Bombay Suburban…” (original co.) ... and they and they did not ask for it to be did not ask for it to be assignedassigned to BSES Ltd to BSES Ltd Maharashtra Govt., Dec 2005Maharashtra Govt., Dec 2005

Licenses still not issuedLicenses still not issued Hon’ble MERC, Dec 2006Hon’ble MERC, Dec 2006

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55thth Oct 2005 Oct 2005

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1616thth Dec 2005 Dec 2005

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1919thth Dec 2006 Dec 2006

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ATE Order, 22ATE Order, 22ndnd May 2006 May 2006

““It is seen that Reliance has not placed It is seen that Reliance has not placed a copy of license in its favour, so also a copy of license in its favour, so also the contract entered … has not been the contract entered … has not been placed before MERC or before us. It is placed before MERC or before us. It is stated, stated, licenses and the contract are licenses and the contract are lost and not traceablelost and not traceable.”.” Para 40, Page 22, Hon’ble Appellate Tribunal for Para 40, Page 22, Hon’ble Appellate Tribunal for

Electricity Order in Appeal No. 31 & 45 of 2005, Electricity Order in Appeal No. 31 & 45 of 2005, dated 22.5.2006dated 22.5.2006

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REL - Not giving License copies !REL - Not giving License copies !

““INSPECTION OF LICENSE AND SUPPLY OF COPIESINSPECTION OF LICENSE AND SUPPLY OF COPIES

A person who has been granted a distribution licence A person who has been granted a distribution licence shall … shall … make available copiesmake available copies of such licence … for of such licence … for public inspection, subject to payment of a public inspection, subject to payment of a cost, which cost, which shall not be more than the cost of photocopyingshall not be more than the cost of photocopying and and sale (printed copies), ….sale (printed copies), ….

Provided that an applicant making request for Provided that an applicant making request for information information shall not be required to give any reasonshall not be required to give any reason for requesting the information or any other personal for requesting the information or any other personal details except those that may be necessary for details except those that may be necessary for contacting him.”contacting him.”

Reg 5.4.1, MERC (General Conditions of Distribution License) Reg 5.4.1, MERC (General Conditions of Distribution License) Regulations, 2006 dt. 28.11.2006Regulations, 2006 dt. 28.11.2006

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Summary of FactsSummary of Facts The Mumbai Suburban License is LOST and not The Mumbai Suburban License is LOST and not

traceable !traceable ! In any case, if License was never assigned to BSES Ltd, In any case, if License was never assigned to BSES Ltd,

how can it now belong to REL ?how can it now belong to REL ? License MUST be assigned, as per Electricity ActLicense MUST be assigned, as per Electricity Act For assignment, prior written permission must be takenFor assignment, prior written permission must be taken The Electricity Act supercedes The Companies ActThe Electricity Act supercedes The Companies Act License Business must be taken over as a whole, not License Business must be taken over as a whole, not

piecemealpiecemeal Electricity companies must take permission for doing Electricity companies must take permission for doing

Other businessOther business Other business profits must subsidise electricity Other business profits must subsidise electricity

businessbusiness

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Why all of this is important to usWhy all of this is important to us

REL’s Other business profits are NOT subsidising REL’s Other business profits are NOT subsidising

electricity business, currentlyelectricity business, currently

In fact, funds collected from Electricity business are In fact, funds collected from Electricity business are

possibly possibly being used in Other businessesbeing used in Other businesses

No separate accounts maintained; no transparencyNo separate accounts maintained; no transparency

LTP Categorisation and Supply (Single/Three phase) LTP Categorisation and Supply (Single/Three phase)

not as per MERC’s Regulationsnot as per MERC’s Regulations

Result:Result: Higher Tariff, Repeated Tariff Shocks, No Higher Tariff, Repeated Tariff Shocks, No

Transparency, High-handed Approach, Consumer Transparency, High-handed Approach, Consumer

harassment, Non-compliance, Against Public harassment, Non-compliance, Against Public

Interest and Policy, Increased litigation, etc.Interest and Policy, Increased litigation, etc.

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TheTheRe-Categorisation Re-Categorisation

IssueIssue

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Categories DefinedCategories Defined

b)b) Four wire, three phase, 240 volts between phase wires Four wire, three phase, 240 volts between phase wires and neutral, general supply exceeding 40 amperes and and neutral, general supply exceeding 40 amperes and sanctioned load not exceedingsanctioned load not exceeding 80 kW/ 100 kVA (107 HP) 80 kW/ 100 kVA (107 HP) in all areas, except in Municipal Corporation areas in all areas, except in Municipal Corporation areas where such limit would be 150 kW/ 187 kVA where such limit would be 150 kW/ 187 kVA (201 HP)(201 HP)

c)c) Three phase, 50 cycles, 11 kV/ 22 kV – all installations Three phase, 50 cycles, 11 kV/ 22 kV – all installations with with contract demand abovecontract demand above 80 kW/ 100 kVA (107 HP) 80 kW/ 100 kVA (107 HP) in all areas, except in Municipal Corporation areas in all areas, except in Municipal Corporation areas where such limit would be 150 kW/ 187 kVA where such limit would be 150 kW/ 187 kVA (201 HP)(201 HP) and up to 1,500 kVAand up to 1,500 kVA

Regulation 5.1, MERC (Standards of Performance) Regulations, 2005Regulation 5.1, MERC (Standards of Performance) Regulations, 2005

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Agreement not required for Agreement not required for Sanctioned Load up to 67 HPSanctioned Load up to 67 HP

““The Distribution Licensee may require the applicant to The Distribution Licensee may require the applicant to execute an agreement for obtaining a new connection, execute an agreement for obtaining a new connection, for change of name and for enhancement of sanctioned for change of name and for enhancement of sanctioned load:load:

Provided that Provided that for sanctioned load of less than for sanctioned load of less than fifty kilo-fifty kilo-watts (watts (67 HP67 HP / 63 kilo-volt-amperes), / 63 kilo-volt-amperes), the agreementthe agreement provided for in this Regulation 6.1 provided for in this Regulation 6.1 shall not be requiredshall not be required and the application form submitted and accepted shall and the application form submitted and accepted shall constitute the agreement”constitute the agreement”

Regulation 6.1 of MERC (Supply Code) Regulations, 2005Regulation 6.1 of MERC (Supply Code) Regulations, 2005

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Two-part Tariff – Govt. PolicyTwo-part Tariff – Govt. Policy

““8.4.1. 8.4.1. Two-part tariffsTwo-part tariffs featuring separate fixed featuring separate fixed

and variable charges and Time differentiated and variable charges and Time differentiated

tariff shall be introduced on priority tariff shall be introduced on priority for large for large

consumersconsumers (say, consumers with (say, consumers with demand demand

exceeding 1 MWexceeding 1 MW) ….”) ….”

Tariff Policy, Govt of India, 2006Tariff Policy, Govt of India, 2006

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Hence, Proper Supply ..Hence, Proper Supply ..

Sanctioned Load is up to 150 kW Sanctioned Load is up to 150 kW (201 HP)(201 HP) No agreement required upto 50 kW No agreement required upto 50 kW (67 HP)(67 HP) Single Part Tariff, no Demand ChargesSingle Part Tariff, no Demand Charges

Contract Demand is beyond 150 kW Contract Demand is beyond 150 kW (201 HP)(201 HP) Agreement is a MUSTAgreement is a MUST Two part Tariff for Fixed Demand ChargeTwo part Tariff for Fixed Demand Charge

REL has now charged Two-Part Tariff, with REL has now charged Two-Part Tariff, with Fixed Demand Charge and Power Factor Fixed Demand Charge and Power Factor Penalty to consumers who are above Penalty to consumers who are above 15 HP !!15 HP !! Till Sept 2006, this slab was at Till Sept 2006, this slab was at 50 HP50 HP

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Earlier Re-CategorisationEarlier Re-Categorisation

REL had recommended this REL had recommended this 15 HP15 HP slab slab vide Order passed in July 2004 alsovide Order passed in July 2004 also A huge Tariff Shock was felt at that time tooA huge Tariff Shock was felt at that time too Subsequently this was withdrawn and Subsequently this was withdrawn and

reversedreversed Interim Order was issued on 30.9.2004, Interim Order was issued on 30.9.2004,

withholding this hikewithholding this hike Final Order was issued on 23.12.2004, Final Order was issued on 23.12.2004,

reversing this, with retrospective effectreversing this, with retrospective effect

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Landmark Order dated 23.12.2004Landmark Order dated 23.12.2004 ““As a result, the bills of many consumers in this As a result, the bills of many consumers in this

category have risen very sharply. Shri Shah (of REL) category have risen very sharply. Shri Shah (of REL) stated that REL have around 12,000 consumers in the stated that REL have around 12,000 consumers in the LTP-2 category, and LTP-2 category, and in many cases their bill amounts in many cases their bill amounts have increased by several timeshave increased by several times.” .”

Para 5, MERC Order dt 23.12.2004Para 5, MERC Order dt 23.12.2004

““The Commission has also observed that the The Commission has also observed that the actual actual revenuerevenue earned by REL from the LTP-2 category over earned by REL from the LTP-2 category over the two-month period of July and August 2004 the two-month period of July and August 2004 is much is much higher than that estimatedhigher than that estimated by the Commission in the by the Commission in the Tariff Order for the same period.”Tariff Order for the same period.”


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Landmark Order dated 23.12.2004Landmark Order dated 23.12.2004

““The Commission does not normally revise tariffs with retrospective The Commission does not normally revise tariffs with retrospective

effect. However, in this case, effect. However, in this case, having found that there has been an having found that there has been an

inadvertent and unintended tariff shockinadvertent and unintended tariff shock because of a combination of because of a combination of

factors, factors, going against its basic philosophy of tariff fixationgoing against its basic philosophy of tariff fixation, the , the

Commission has now decided to apply the recategorisation and Commission has now decided to apply the recategorisation and

consequent change in tariff at para 13, earlier effected consequent change in tariff at para 13, earlier effected

prospectively, with retrospective effect from 1.7.2004... prospectively, with retrospective effect from 1.7.2004... The excess The excess

billing and recoverybilling and recovery from the concerned consumers arising from from the concerned consumers arising from

such retrospective application such retrospective application should be refunded to them by RELshould be refunded to them by REL

by adjustment through energy bills or by other means by the end of by adjustment through energy bills or by other means by the end of

March, 2005, along with refunds arising from the change in billing March, 2005, along with refunds arising from the change in billing

demand definition as at para 17 above.”demand definition as at para 17 above.”


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Landmark Order dated 23.12.2004Landmark Order dated 23.12.2004

““REL have urged the Commission to retain the REL have urged the Commission to retain the

earlier categorization of LTP-1, wherein even earlier categorization of LTP-1, wherein even

lift, water pump and fire fighting equipment, lift, water pump and fire fighting equipment,

etc. upto 15 HP, and non- industrial load upto etc. upto 15 HP, and non- industrial load upto

20 kW were included under LTP-1, considering 20 kW were included under LTP-1, considering

the fact that they would face a significant loss the fact that they would face a significant loss

in revenue. in revenue. The Commission does not find any The Commission does not find any

merit in this request. Hence, REL’s request for merit in this request. Hence, REL’s request for

review on this count is rejectedreview on this count is rejected.”.”


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Tariff Shock!Tariff Shock!

Account Account No.No.

September 2006September 2006 October 2006October 2006% increase % increase

in ratein rateCateg.Categ. Rs. per Rs. per UnitUnit Categ.Categ. Rs. per Rs. per

UnitUnit

102693272102693272 LTP-1LTP-1 4.854.85 LTP-2LTP-2 21.5821.58 345%345%

102688879102688879 LTP-1LTP-1 10.7610.76 LTP-2LTP-2 36.1536.15 236%236%

102687077102687077 LTP-1LTP-1 5.455.45 LTP-2LTP-2 15.8315.83 190%190%

102687212102687212 LTP-1LTP-1 4.964.96 LTP-2LTP-2 16.7116.71 237%237%

102660859102660859 LTP-1LTP-1 4.854.85 LTP-2LTP-2 11.4911.49 137%137%

102688753102688753 LTP-1LTP-1 4.904.90 LTP-2LTP-2 21.7621.76 344%344%

102688568102688568 LTP-1LTP-1 4.824.82 LTP-2LTP-2 17.9017.90 271%271%

102688549102688549 LTP-1LTP-1 4.764.76 LTP-2LTP-2 21.5621.56 353%353%

We have thousands of such bills and can present them if requiredWe have thousands of such bills and can present them if required

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Account Account No.No.

September 2006September 2006 October 2006October 2006% increase % increase


UnitUnit

102693033102693033 LTP-1LTP-1 5.535.53 LTP-2LTP-2 47.1747.17 753%753%

102690108102690108 LTP-1LTP-1 5.135.13 LTP-2LTP-2 15.1615.16 198%198%

102690340102690340 LTP-1LTP-1 4.944.94 LTP-2LTP-2 10.5510.55 114%114%

150304676150304676 LTP-1LTP-1 23.5623.56 LTP-2LTP-2 811.50811.50 3345%3345%

102691722102691722 LTP-1LTP-1 7.447.44 LTP-2LTP-2 22.7322.73 205%205%

102691669102691669 LTP-1LTP-1 7.817.81 LTP-2LTP-2 10.8910.89 126%126%

102697932102697932 LTP-1LTP-1 4.824.82 LTP-2LTP-2 10.2910.29 113%113%

102690568102690568 LTP-1LTP-1 5.435.43 LTP-2LTP-2 12.8912.89 137%137%


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Account No.

September 2006 October 2006% increase % increase


UnitUnit

102690346 LTP-1 4.84 LTP-2 10.19 111%

102691163 LTP-1 4.81 LTP-2 10.73 123%

102688264 LTP-1 4.85 LTP-2 10.75 121%

102688308 LTP-1 4.83 LTP-2 13.98 189%

102688565 LTP-1 4.74 LTP-2 9.11 143%

102691905 LTP-1 4.86 LTP-2 11.53 137%

102688513 LTP-1 4.79 LTP-2 10.49 119%

102687007 LTP-1 4.82 LTP-2 12.21 154%


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Humble RequestHumble Request

We need the Hon’ble We need the Hon’ble Commission to come up Commission to come up with another Landmark with another Landmark

Order, reversing this Order, reversing this re-categorisation, with re-categorisation, with

retrospective effect.retrospective effect.

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The The Multi Year Tariff Data Multi Year Tariff Data

IssuesIssues

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Capital ExpenditureCapital Expenditure REL is NOT maintaining separate accounts for REL is NOT maintaining separate accounts for

Mumbai Electricity and Other businessesMumbai Electricity and Other businesses

Other businesses inlcude:Other businesses inlcude: Other States’ Electricity business: BSES Kerala, BSES Other States’ Electricity business: BSES Kerala, BSES

Delhi, BSES Goa, Orissa Discom, Dadri Project, Sobla Delhi, BSES Goa, Orissa Discom, Dadri Project, Sobla

Hydro, Tato Hydro, Shahpur Project, Rosa Power, Hydro, Tato Hydro, Shahpur Project, Rosa Power,

Parbati/Koldam Transmission, etc.Parbati/Koldam Transmission, etc.

Mumbai Metro Rail ProjectMumbai Metro Rail Project

Highway Projects in TN and AndhraHighway Projects in TN and Andhra

Reliance BlueMagic Direct-to-Home Satellite TVReliance BlueMagic Direct-to-Home Satellite TV

Are Mumbai consumers paying for these ??Are Mumbai consumers paying for these ?? When asked, REL has refused to give data !!When asked, REL has refused to give data !!

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Higher Interest Rate Claimed Higher Interest Rate Claimed

MYT states Interest on borrowings (loan and working MYT states Interest on borrowings (loan and working

capital) @ capital) @ 10.25%10.25% p.a.p.a.

REL’s 77REL’s 77thth Annual Report (June 2006) proudly proclaims Annual Report (June 2006) proudly proclaims

that Average cost of borrowing is that Average cost of borrowing is 4.5%4.5% p.a.p.a.

REL has also issued REL has also issued Zero Rate FCCBsZero Rate FCCBs in Nov 2006 in Nov 2006 When asked, REL has stated that these are as per When asked, REL has stated that these are as per

MERC Tariff RegulationsMERC Tariff Regulations Should expenses be approved, even if NOT incurred??Should expenses be approved, even if NOT incurred?? Commission to disallow higher interest rates, even for Commission to disallow higher interest rates, even for

earlier yearsearlier years

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Power Purchase - DiscrepanciesPower Purchase - Discrepancies

REL’s Petition, page 5 of REL-D, Table 3REL’s Petition, page 5 of REL-D, Table 3

TPC-G will supply 3981 MU and TPC-D will supply TPC-G will supply 3981 MU and TPC-D will supply

787 MU in FY 07-08787 MU in FY 07-08

TPC’s Petition, page E-20, Table 1-19TPC’s Petition, page E-20, Table 1-19

TPC will supply REL only TPC will supply REL only 3127 MU3127 MU in FY 07-08 in FY 07-08

There is no formal Purchase Agreement yet, There is no formal Purchase Agreement yet,

between TPC and RELbetween TPC and REL How can the Public actually comment on expenditure How can the Public actually comment on expenditure

or the tariff, since the purchase price and quantum or the tariff, since the purchase price and quantum

itself is not fixed??itself is not fixed??

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Poor ResponsesPoor Responses

REL did not provide any data, as requested REL did not provide any data, as requested Mentioned that all details, as were necessary, were Mentioned that all details, as were necessary, were

sent to MERC, in the formats, as specified by MERCsent to MERC, in the formats, as specified by MERC In other words, REL did not part with any data, In other words, REL did not part with any data,

as requested for, by the Publicas requested for, by the Public Public will have no option but to invoke the Public will have no option but to invoke the

Right to InformationRight to Information and bring such errant and bring such errant agencies to bookagencies to book

Meanwhile, Hon’ble MERC to take strict action Meanwhile, Hon’ble MERC to take strict action and penalise electricity utilities for such and penalise electricity utilities for such inadequate disclosuresinadequate disclosures

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REL is Profitable : FY 2005-06REL is Profitable : FY 2005-06

2890

3179

Electricity Sales

520

650

Net Profit

Up 10%Up 10% Up 25%Up 25%

In Rs. Crores. Source: REL 77In Rs. Crores. Source: REL 77thth Annual Report 2005-06, page 13 Annual Report 2005-06, page 13

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REL is Profitable : 9 Mo FY 2006-07REL is Profitable : 9 Mo FY 2006-07

2399

2744

Electricity Sales

480

564

Net Profit

Up 17%Up 17% Up 18%Up 18%

In Rs. Crores. Source: REL Quarterly Result dt. 18.1.2007 In Rs. Crores. Source: REL Quarterly Result dt. 18.1.2007

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Tariff Impact in 6 Mo: Sep-Apr Tariff Impact in 6 Mo: Sep-Apr Residential User of 100 unitsResidential User of 100 units

Normal:Normal: Up 20 % Up 20 %With ATE:With ATE: Up 39 % Up 39 %

169

248223

297270

345

Single Phase Three Phase

Sep-06 Apr-07 With ATE


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Tariff Impact in 6 Mo: Sep-Apr Tariff Impact in 6 Mo: Sep-Apr Residential User of 400 unitsResidential User of 400 units


1989 2052

2826 2879

3580 3633

Single Phase Three Phase

Sep-06 Apr-07 With ATE


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Our Humble Prayers to Our Humble Prayers to the Hon’ble MERCthe Hon’ble MERC

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Reject this MYT; direct REL to file revised oneReject this MYT; direct REL to file revised one Direct REL to Direct REL to revert this unholy revert this unholy

recategorisationrecategorisation of LTP-1 Consumers of LTP-1 Consumers Direct REL Direct REL to refundto refund, within 60 days, the extra , within 60 days, the extra

amounts collectedamounts collected Direct REL to Direct REL to waive any DPC and Interest waive any DPC and Interest

ChargesCharges on any late paid (or unpaid) bills of on any late paid (or unpaid) bills of such re-categorised consumerssuch re-categorised consumers

Condone any delay in making this Appeal – Condone any delay in making this Appeal – Tariff shock took months to set inTariff shock took months to set in

Humble Prayers to Hon’ble MERCHumble Prayers to Hon’ble MERC

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Re-examine REL’s claim to being a LicenseeRe-examine REL’s claim to being a Licensee

in light of the facts presented in light of the facts presented

Penalise RELPenalise REL for such wilful misleading for such wilful misleading

(penalty at least equivalent to License Fees)(penalty at least equivalent to License Fees)

Direct REL Direct REL to refundto refund, with interest, to the , with interest, to the

consumers, all the amounts collected as consumers, all the amounts collected as

“Revenue Gaps” in the ARR, since 1992“Revenue Gaps” in the ARR, since 1992

Direct REL to make Direct REL to make a public apologya public apology in in

leading National and Regional dailiesleading National and Regional dailies


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Reschedule all the Public Hearings for all Reschedule all the Public Hearings for all

electricity utilities; declare new dates, giving electricity utilities; declare new dates, giving

the public at least the public at least 60 days’ notice60 days’ notice

Henceforth, allow the public to file Henceforth, allow the public to file

responses, comments responses, comments via emailvia email

DPC and Prompt Payment Discounts to be DPC and Prompt Payment Discounts to be

levied levied on the same itemson the same items

Increase time period for filing Appeal, to Increase time period for filing Appeal, to 90 90

days from Date of Orderdays from Date of Order

50

Tamasoma jyotir gamayaTamasoma jyotir gamaya(From darkness unto light)(From darkness unto light)

Contact:Contact: Sandeep N. OhriSandeep N. Ohri

Member:Member: Bombay Small Scale Industries Association Bombay Small Scale Industries Association

Email:Email: [email protected] [email protected]

Mobile:Mobile: 98 33 09 7575 98 33 09 7575

Blog:Blog: http://snohri.blogspot.com http://snohri.blogspot.com

Moderator:Moderator: http://groups.yahoo.com/group/bijlee http://groups.yahoo.com/group/bijlee

I sincerely thank the Hon’ble Commission for this I sincerely thank the Hon’ble Commission for this opportunity, the time and their patience!opportunity, the time and their patience!

1 Public Hearing Presentation Reliance Energy Limiteds Multi Year Tariff (MYT) Petition MERC Case...

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Transcript of 1 Public Hearing Presentation Reliance Energy Limiteds Multi Year Tariff (MYT) Petition MERC Case...