The Appellate Tribunal for Electricity (Aptel) said on Thursday Tata Power should be restricted in terms of network expansion and supply of electricity to certain categories of customers in Mumbai ? by imposing an interim stay on a previous order issued by the Maharashtra Electricity Regulatory Commission (MERC), which had lifted such a restriction.
The MERC, in two separate orders dated August 22, 2012 and October 30, 2013 had observed that ?ward-wise cherry picking by Tata Power is evident, especially for single consumers,? and had added that, ?there is a need to intervene in the manner of changeover and switchover of consumers..there is a need to calibrate the migration of consumers from one licensee to another, in order to ensure a level playing field and also to protect the interests of low-end consumers being supplied electricity in the common area of supply between Reliance Infra and Tata Power.?
Following the Aug 22, 2012 order, the MERC had imposed a restriction which mandated that residential consumers belonging to the 0-300 consumption category can only change over to Tata Power?s network from Reliance Infra?s ? thus pre-emptying any switchover by bulk consumers.
On August 14, the state regulator had issued a distribution license to the Tata Group company expanding its network of operations to include the island city, which was previously served by the state-owned utility, The Brihanmumbai Electric Supply & Transport Undertaking.
As a part of the August 14 order, MERC said, ?Any direction issued by the commission restricting Tata Power?s network expansion and supply to identified categories, consumers or areas in the earlier license are hereby revoked.? ? which essentially erased the previously imposed restrictions.
Aptel, in its judgment issued on Thursday, cited MERC?s observations on the development of Tata Power?s network in the duration the August 22 order was in effect. Justice M Karpaga Vinayagam wrote MERC has recognised that Tata Power developed its network because of the restrictions and yet, it is not ?satisfactory enough.?
?When such was the finding and conclusion by the state commission, then what was the necessity for the state commission to remove all restrictions imposed on Tata Power through earlier orders? There is no clear answer in the impugned order,? the order says.
Tata Power is appealing against the August 22 order which is pending in Aptel.
?When those issues relating to the restrictions imposed earlier, are pending in the tribunal in the appeals in which the state commission was a party, there is no reason as to why the state commission has rushed to revoke these restrictions ? that too without reasons and that too without the clearance of those issues relating to those restrictions through the disposal of the Appeals by this Tribunal,? Aptel said.
?It is disappointing that Aptel has stayed MERC?s order removing restrictions for consumers of all categories to make a choice of switching to Tata Power distribution services in Mumbai. The choice of multiple distributors in Mumbai was to allow consumers the benefit of the competitive services and prices available through different service providers. The order is awaited, and we will study it on receipt and then decide on next course of action and be able to comment on other details thereafter,? Tata Power said in a statement.
