RInfra throws power ball at consumers’ doorstep

The dispute between Reliance Infrastructure (RInfra) and Tata Power Company (TPC) has now reached the consumers’ doorstep. Soon, the Maharashtra Electricity Regulatory Commission will hear people’s opinion on the ongoing power dispute between the two companies.

RInfra is distributing a 10-page booklet detailing TPC’s plan to “leave 28 lakh suburban consumers in the lurch by selling power to make a profit of Rs1,200 crore”.

The booklet further blamed TPC for not allowing RInfra to set up power plants for Mumbai. It said that TPC used the consumers’ money to fund their own power plants, which, it claimed, was to meet the city’s power demand. The documents also said the company was not fulfilling its duties and was also refusing to sign a power-purchase agreement with RInfra.

TPC, the booklet claimed, was instead selling 100MW generated from one of its units outside Mumbai and making profits of over Rs300 crore.

RInfra officials said the public would have to shell out high tariff because electricity would have to be purchased from the open market.

TPC on Friday alleged through a written communication that the campaign by Rinfra was malicious. “The campaign is aimed at maligning the Mumbai consumer’s faith in Tata Power; that has been serving Mumbai by generating and providing power for about 100 years,” a TPC spokesperson said.

 The statement said the booklet was an attempt to disturb the freedom of choice available to the consumers; thereby restricting the switch-over from RInfra to Tata Power.

“It is essentially a diversionary tactic to divert the attention of Mumbai consumers from the persistent failures of RInfra to manage its costs, including power procurement costs, as a result of which Mumbai consumers are faced with unprecedented tariff burden not seen anywhere else in the country. This situation has come to light even when Tata Power was supplying 500MW last year to Rinfra without their signing a contract,” the statement said.

TPC had moved the Bombay high court to set aside a state government suggestion to supply 360MW to RInfra at a cheaper rate of Rs3.70 a unit. The court, however, did not give any interim relief. Now, the MERC will take a decision after holding a public hearing on the power dispute on June 28 at Rang Sharada in Bandra.