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MERC to hear BSES plea on Wed

Renni Abraham in Mumbai | October 01, 2003 09:49 IST

The Maharashtra Electricity Regulatory Commission will on Wednesday hear a submission made by the BSES, seeking permission for accessing the transmission lines of the Tata Power Company as well as the Maharashtra State Electricity Board.

Earlier this month, BSES had filed an application before the MERC.

The company hopes to fulfill its power requirements from more sources (other than TPC and MSEB) to meet its electricity supply requirements in Mumbai.

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BSES caters to an estimated 22 lakh (2.2 million) consumers in the suburbs of Mumbai and draws power from its Dhanu thermal power plant in addition to what it draws from TPC on a contracted basis.

According to an industry source, the permission, if granted, will allow BSES to access electricity according to its consumer requirements from more power generating utilities, reducing its dependence on TPC.

Meanwhile, the MERC on Tuesday heard the submissions of the counsels for both BSES and TPC on the issue of rebates offered by BSES to certain sections of consumers that TPC is servicing.

TPC Counsel submitted that under the current legislation, the, "rebate or adjustment of charges cannot be selective between consumers. In case of refund to consumers, no distinction can be made and the refund must be proportionate.

"It has to be proportionate because the amount collected from consumers in excess of reasonable return and contrary to the mandate of the (Electricity Regulation) Act has to be returned to them in part.

"The Act does not allow the licensee to give more or less to certain consumers. Thus the mechanism of Schedule VI was not envisaged for giving selective rebates, and in any case such rebates are intended to disgorge licensee of excess profit."

TPC had filed the petition before the MERC alleging that BSES was offering lower tariffs to certain sections of consumers in Mumbai city (including TPC's consumers) without taking prior sanction of the MERC.

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