Case No. 151 of Shri. V.P. Raja, Chairman Shri. Vijay L. Sonavane, Member Smt. Chandra Iyengar, Member

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1 Before the MAHARASHTRA ELECTRICITY REGULATORY COMMISSION World Trade Centre, Centre No.1, 13th Floor, Cuffe Parade, Mumbai Tel. No /65/69 Fax mercindia@mercindia.org.in Website: Case No. 151 of 2011 In the matter of Petition of M/s. Reliance Infrastructure Ltd (Distribution) seeking relief on account of certain issues affecting Reliance Infrastructure Limited (Distribution) and its financial viability Shri. V.P. Raja, Chairman Shri. Vijay L. Sonavane, Member Smt. Chandra Iyengar, Member Reliance Infrastructure Ltd. (Distribution) Petitioner V/s The Tata Power Company Ltd. (Distribution) Respondent SUPPLEMENTARY ORDER Dated: 20 August, 2013 M/s. Reliance Infrastructure Ltd. (Distribution) ( RInfra-D ) had submitted a Petition under affidavit on October 21, 2011, seeking relief on account of certain issues affecting RInfra-D and its financial viability, under Section 43 of the Electricity Act, 2003 ( EA 2003 ), which was numbered as Case No. 151 of The Commission, vide its Order dated 22 August, 2012 in Case No. 151 of 2011, modified its interim Order in Case No. 50 of 2009, under Section 94(2) of the EA 2003, and gave certain directions to TPC-D. The relevant extract is given below: 96. Based on all the analysis of all the above issues, the Commission has come to the conclusion that there is a need to intervene in the manner of changeover and switchover of consumers, as being undertaken by the Parties, and 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 1

2 protect the interests of low-end consumers being supplied electricity in the Common Area of supply between RInfra-D and TPC-D. Accordingly, the Commission hereby modifies the interim Order in Case No. 50 of 2009, under Section 94(2) of the EA 2003, as under: a) Prospectively, from the date of this Order, consumer changeover will be allowed from RInfra-D to TPC-D only for the residential category of consumers and that too only for the consumers who consume electricity upto 300 units a month. d) This restriction of changeover being restricted to residential consumers with average electricity consumption of upto 300 units a month, shall be in force for a period of one year from the date of this Order, and the Commission will review the status of changeover and switchover and new connections added in the identified areas during this period, before deciding on the forward path for the period beyond one year. f) It may be noted that apart from the above modifications, all other aspects of the Protocol will remain the same as approved by the Commission in the interim Order dated October 15, 2009 in Case No. 50 of g) Further, TPC-D should immediately amend its Power Supply Application Form to bring it in line with the MERC Supply Code Regulations, and remove the mandatory requirement of providing the PAN/TAN Card number, Mobile number, etc., as elaborated above. h) The Commission will also monitor the progress of consumer addition by TPC-D (changeover, switchover, new connections and reverse migration, if any) on quarterly basis (June, September, December, March), and both RInfra-D and TPC-D will be required to submit the desired information (refer Annexure I) for every quarter, by the end of the first month after the end of the respective quarter. i) Switchover of consumers from RInfra-D to TPC-D is allowed for existing changeover consumers and all consumers who have already applied and are eligible for changeover, for all consumer categories, from the date of laying in the Common Licence Area. This has been explained in greater detail in the subsequent paragraphs. 2

3 k) The above dispensation, to be in force for the next one year from the date of this Order. Table: Matrix for migration of Consumers from RInfra-D to TPC-D Particulars Consumers All consumers Allowed in Distribution in other than Which Network Units Units residential Wards/ being used Residential Category category Clusters Changeover Allowed Not allowed All RInfra-D Switchover (means disconnected from one DL Allowed Not Allowed for Applications made for a period of one year from Selected Clusters/ Wards TPC-D's own and reconnected the date of issue on of this Order wires of other (since the new DL) changeover/switc hover Applications from categories other than units residential category are blocked) However, switchover is allowed for existing changeover consumers and changeover consumers Direct (new consumers) Allowed Allowed All TPC-D's own 3

4 98. Accordingly, the Commission hereby issues the following directions to TPC-D regarding the roll out plan and capital expenditure to be undertaken over the next one year from the date of this Order: a) TPC-D will have to focus all its energies and capital expenditure and ensure that by the end of one year from the date of this Order, TPC-D has rolled out its entire in the 11 Clusters identified above (to be redrawn into a Municipal Ward-wise Plan by TPC-D) in such a manner that it is in a position to provide supply through its own to existing and prospective consumers located anywhere within these Clusters, within the minimum time period of one month specified under the MERC SOP Regulations. d) Further, TPC-D should ensure that wide publicity is given to reach the consumers in these identified 11 Clusters, to the effect that TPC-D is in a position to provide supply using its own to all consumers interested in taking power supply from TPC-D, within the timelines specified in the MERC SOP Regulations. (emphasis added) 3. As reproduced above, the period of one year mentioned in the Order dated 22 August, 2012 in Case No 151 of 2011 is coming to end on 21 August, Meantime, as directed in the Order dated 22 August, 2012, the Commission was in receipt of the Quarterly Reports from TPC-D and RInfra-D for the first three Quarters, viz., Aug-Sep 2012, Oct-Dec 2012, and Jan-Mar The Commission has also obtained certain data regarding the status of addition in the identified 11 Clusters from TPC-D. The Commission has analysed the progress of changeover and switchover and the status of creation of by TPC-D in its licence area and has observed that there are discrepancies between the submissions made by TPC-D and RInfra-D. Further, the Commission also observed that the progress of changeover and switchover consumers and the creation of by TPC-D was quite slow. 4. In view of the above development, the Commission has initiated suo-motu proceedings under Case No 85 of 2013 for Review of Quarterly Reports as submitted by TPC-D and RInfra-D as directed in the Order in Case No 151 of 2011 and vide Notice dated 28 June, 2013 directed TPC-D to appear before the Commission in this matter. Till date, two hearings has been held in this matter on 11 July, 2013 and 29 July, 2013, in the presence of 4

5 Consumer Representatives authorised under Section 94 of the EA The third hearing in this matter, scheduled on 13 August, 2013, had to be postponed due to unavoidable circumstances, and the next date for the hearing is yet to be given. 5. As the proceedings in the Suo-motu Case No. 85 of 2013 are still going on and the Order in Case No. 85 of 2013 can be issued only after hearing the Parties and in order to ensure that there is no policy vacuum in this regard, the Commission hereby decides to extend the validity of the directions issued in the Order in Case No. 151 of 2011 till 31 October, 2013 or the issue of the Commission s Order in Case No. 85 of 2013, whichever is earlier. Accordingly directed. Sd/- Sd/- Sd/- (Chandra Iyengar) (Vijay L. Sonavane) (V. P. Raja) Member Member Chairman 5