Tribunal cancels MERC order in favour of Reliance Energy Ltd

The Appellate Tribunal for Electricity on Tuesday set aside the November 6, 2007 order of the Maharashtra Electricity Regulation Commission (MERC), which had approved the power-purchase agreement (PPA) for 800 MW between Tata Power Company (Generation) and BEST and 477 MW between Tata Power Company’s Generation and Distribution Departments.The decision comes in the favour of the Reliance Energy Limited (REL) whose claim for allocation of power was rejected by the MERC.
The two-member bench of the tribunal, comprising chairman justice Anil Dev Singh and technical member H L Bajaj, said the MERC ought to have considered the claim by the REL while considering the approval of the PPA between Tata Power and BEST and arrangement between Tata Power’s Generation and Distribution departments. REL had moved the tribunal, demanding equal allocation of power.The tribunal said the MERC has powers to regulate the quantity of energy that may be supplied by a generating company to a distribution licensee when both are under the jurisdiction of the same commission.The BEST has decided to move the Supreme Court against the verdict of the Tribunal. BEST General Manager Uttam Khobragade said the orders have been issued to the authorities concerned to move the apex court. Incidentally, Khobragade had demanded that the MERC cancel the license of REL if it failed to provide adequate power.The tribunal has also directed the MERC to consider the question of approval of PPA and the arrangement after taking into consideration the claims of BEST, REL and TPC(D).
Wednesday, May 07, 2008


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