BEST assurance falls flat on face

The assurance given by the Brihanmumbai Electric Supply and Transport (BEST) of uninterrupted power supply to its nearly 10 lakhs consumers following a power-purchase agreement (PPA) with Tata Power Company (TPC) hangs in balance as the Appellate Tribunal for Electricity (ATE) last week asked the Maharashtra Electricity Regulatory Commission (MERC) to re-consider this agreement.

In April, after a shortfall of 400 MW in the city, MERC had ruled that there must be proportionate distribution of electricity and load shedding (if required). However, BEST had refused to accept the ruling contending that if they have already signed PPA of 800 MW with TPC, they must be assured uninterrupted supply. TPC supplies 1,777 MW power to the city while Reliance Energy Limited (REL) pitches in another 500 MW. Of its total generation, TPC supplies 800 MW to BEST, 477 MW for its own consumers and balance 500 MW is supplied to REL for their consumers.

For a demand of 800 MW, the BEST had signed a PPA with TPC a year ago which was pending for a final decision with the MERC. But as REL’s demand was somewhere around 719 MW and they refused to sign a formal agreement with TPC for 500 MW.