Bharatiya Udhami Avam Upbhokta Sangh
Presentation in the Matter of Case No13 of 2010
By
Raksh Pal Abrol
At RANG SHARDA Natya Mandir, BANDRA (W)
on
28-06-2010
In the Public Hearing organised by Commission
About the Memorandum
No. TPC-2010/CR-131/NRG-1 Dated 7th May,2010
Industries ,Energy and Labour Department
Duly signed by Secretary(Energy),
Government of Maharashtra
And
Letter dated 05,MaY,2010 of Reliance Infrastructure Limited,
signed by
Shri. Lalit JALAN
C.E. O. & DIRECTOR
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Background :The undersigned Raksh Pal Abrol, President of Bharatiya Udhami Avam Upbhokta Sangh
has been authorised by the Commission under Section 94 (3) of the Electricity Act, 2003
as Consumer Representative on 17th May,2010 in CaseNo.13 of 2010.
Vide Letter No.MERC/LEG/Case No.13 of 2010/00318.
Section 94 (3) The Appropriate
Commission may authorise any person, as it deem fit, to represent the interest of the
CONSUMERS in the proceeding before it.
Under MERC (Conduct of Business) Regulations dated 10,June, 2004 As per Regulation
18 the Commission may permit any person, including any Association or other bodies
corporate or any group of consumers, to participate in any proceedings before the
Commission.
In this Commission may if it consider necessary (a) Notify a procedure for recognition of Associations, groups, forums or bodies Corporate
as registered association for the purposes of representation before The Commission;
(b) appoint any Officer or any other person to represent the consumers' interest in the
proceedings before it, on such terms as to fees, costs and expenses by such parties in the
proceedings as consider appropriate.
Therefore as appointed the Consumer Representative Undersigned proceed in the Issue
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The Power and Functions of State Commission have been defined under Chapter V.
THE MAHARASHTRA ELECTRICITY REGULATORY COMMISSION(MERC) came into
EXISTENCE IN THE YEAR 1999.
The state government did not disclose that said organisation is not having the distribution license on
their name at the time of issue of Notification for delegating the power to MERC.
This information was received under Maharashtra RTI Act,2002 on 16th December,2005 vide Letter
No REL/0405/CR-279/NRG-1 on written Application dated 17th November,2005.
The MERC also informed under RTI Act, 2002 vide their letter No. MERC/142/Amendment License
Conditions/ 2013 dated 05th October, 2005 that no separate license has been issued to Reliance
Energy Limited (Erstwhile BSES Limited).
The MERC vide their letter No. MERC/RTI Case 25/2008 /1291 dated 24th June,2008 have informed
under Right of Information Act,2005 that Commission has not authorised Reliance Infrastructure
Limited for distribution of Electricity.
Under the Provisions of the erstwhile ERC Act,1998, the State Government has delegated the power
to State Electricity Regulatory Commission by issue of Notification published in the Official Gazette.
The Said ERC Act,1998 ,Indian Electricity Act,1910 and Electricity (Supply) Act,1948 were repealed
vide issue of the Electricity Act, 2003 (36 of 2003) on 10th June, 2003
The power of the State Government for changing over the name or any other changes did not
sought by the existing Distribution Licensees and Transmission Licensees .The said issue is a
violation of the IEA !910.The Commission was not authorised to issue any License for One year and
as such could not be transferred by Retrospective effect or transferred by Appropriate Commission
as on 10th June,2003.
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BACKGROUND:
The Distribution Licensee named Bombay Suburban Electricity
Supply Limited was holding the Bombay Suburban Electric
License,1926 Under the Provisions of the Indian Electricity
Act,1910 (9 of 1910) To distribute Electricity to Consumers for all
purposes in the Licensed area earmarked in the said license.
The Government of Maharashtra has amended the said license On
30 May,1992 for carrying out generation 500 MW
The said power generated should be supplied to the Consumers in
Mumbai suburb.
They were to bring the power by transmitting at their own & were to
Execute the Inter connection with TEC at Borivali As per the
approval of C.E.A. New Delhi
The said license was validated up to 15th August,2011 Vide
LBY-1390/CR-1609/NRG-2 dated 30/05/1992
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The Bombay Suburban Electric Supply Limited changed its name to
BSES Limited on 23rd December,1992.
The Said Organisation did not approach the Government under Section
9(2) Of the Indian Electricity to get the Licensed changed to BSES
Limited.
The BSES Limited filed their Tariff Approval and made effective from1st
August,1994 to distribute the Electricity without obtaining the License
under the Indian Electricity Act,1910 as required.
The State Government did not take any Action and without following the
due Proceed of Law approved the Tariff from 1st August, 1994.
The were also allowed to collect the Excise Duty under Bombay
Electricity Act,1958 as Licensee under the Indian Electricity Act,1910
They were also allowed to take rebate under Section 4(4) of the said Act,
as well under the Maharashtra Tax Laws (Levy & Amendment) Act,1988
the Tax on Electricity (TOSE). Without following the established law of
the land.
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Bharatiya Udhami Avam Upbhokta Sangh
THE ABOVE NAMED UTILITIES DID NOT SIGN THE POWER PURCHASE
AGREEMENT (PPA) WITH TATA POWER COMPANY LIMITED AS PER THE
PROVISIONS OF THE INDIAN ELECTRICITY ACT,1910.
THEY DID NOT ENETRED INTO THE CONNECTION OF POWER SUPPLY AT
BORIVALI AS PER THE CONDTITIONS LAID DOWN 0N30TH MAY,1992 AND THE
APPROVAL OF CENTRAL ELECTRICITY AUTHORITY.
IN THE YEAR 1995,THERE WAS WESTREN GRID FAILURE.
THE ABOVE NAMED ORGANISATION WAS NOT BRINGING THE POWER TO
MUMBAI AREA AND WERE NOT THE MEMBER OF WESTREN GRID.
THE CONSUMERS OF SUBURBAN MUMBAI LEFT HIGH & DRY.
IT WAS 2ND TIME
FIRST FAILURE WAS ON 18, 23, 29 MAY,1992.
THE GOVERNMENT DID NOTHING TO PROTECT THE INTEREST OF THE
CONSUMERS.
THE PARLIAMENT ENACTED THE ELECTRICITY REGULATORY COMMISSION
ACT,1998 (14 OF 1998) on 2nd July,1998
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The Government has collected this duty to the tune of Rs.1190.81 2005-06
1450.02 2006-07
1903.00 2007-08
2401.00 2008-09
Rs.
6545 Crores
The Government also collecting Tax under Maharashtra Tax Laws(Levy and Amendment ) Act ,1988
as Domestic and Non Domestic as 19 paisa/23 paisa per unit consumed.
These additional amount paid goes for development of Generation, Transmission and other
expenses excluding the Tariff fixed for Consumption of Electricity
Now the duty rate have been enhanced from 1st February,2010. The Tariff Rate has been made
effective of TPC from 1st June,2009.
The Tariff Rate effective of RINFRA has been stayed of 15th July,2009 under Section 108.
The Change over is effective from 15th October,2009 in Mumbai after the Order dated 8th July,2008
And 8th May,2009 of Supreme Court by MERC.
Imposition of Section 11, Section 60 Section 108 is not mandatory
The RINFRA misguided the Commission about Classification as Indian Rules,1956 not repealed.
The State Government did not initiated any proceeding against the said organisation during the
period of 3rd March,1997 to 30th June, as they not only violated the prevailing law but also received
less Electricity duty from Residential, Commercial ,Industrial and HT Consumers
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The State Government has collected the Electricity Duty from all the Consumers of Maharashtra
through the Distribution Licensees to meet the Power Generation Companies ,Transmission &
Distribution of Electricity Duty less the Rebate granted to BSES Limited without having License on
their name.
Again the Tariff dated 1st March ,1997 was approved by the Government of Maharashtra, wherein
the Consumers consuming the Electricity above 350 Unit per Month were denied the Slab Exemption
and were charged Rs.3.38 per unit from 1st Unit.
The BSES Limited had collected more than Rs.148 Crores from the Consumers under the guise of
Development Funds under THE PROVISIONS OF I NCOME TAX,ACT,1961,WHICH WAS NOT
ALLOWED AFTER THE 31ST MARCH,1990 Vide Notification No. S.O. 233(E) dated 19th
March,1990 under SECTION 32 A (SB) (b) to discontinue Investment allowance In respect of
Machinery or Plant installed after 31-.03-1990 THE STATE GOVERNMENT ALLOWED THE SAME
WITHOUT THE AUTHORITY OF LAW.
IT WAS CHALLANGED VIDE WRIT PETITION No. 2125 OF 1998 THE SAID PETITION WAS
OPPOSED BY THE STATE GOVERNMENT TOO.
THE PETITION WAS ADMITTED ON 17TH NOVEMBER,1998 & also one more Petition is admitted
where in Flat rate were admissible To Residential Consumer crossing 350 Units per month by the
Tariff approved on 1st March,1997 by the State Government.
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The Electricity duty was 12% for Residential, 13% for Commercial, 6% for Industrial And High
Tension Consumers under the Bombay Electricity Act,1958
The said Company had their own Tariff with Maximum Rate of RS.2.72 per Unit Applicable
from 1st March,1997 till 30 the June,2004 for certain Consumers.
The State lost about Rs. 5000 Crores
Residential Consumer paid Rs.0.3264 in place Rs.0.4056
loss 80.47%
Commercial Consumer paid Rs.0.3536 in place Rs 0..6058
loss 58.47%
Small Industries
paid Rs. 0.163 in place Rs. 0.228
loss 28%
Large Industries
paid Rs. 0.1632in place Rs. 0.2862 loss 57%
HT Consumer
paid Rs. 0.1632 in place Rs.0.2328 loss 70%
The Government could not arrest the situation well known & one of Govt. Employee Was
nominated Director.
The Public lost the trust in the State Government & Central Government enacted.
The Electricity Regulatory Commission under ERC Act,1998.
The Electricity Commission had appointed Consumer Representative under Section 26 of the
said Act.
The Undersigned was made Intervener as per the letter IEA /9097/CR9270/NRG-9
Dated 13th June,2002.
The letter is attached
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Power of the State Government has been made Limited under
Section 11 Direction to generating Companies, Section 31
(1)Constitution of State Load Dispatch Centres and said State
Load Desptach Centre shall be operated by a Government
company or any authority or corporation established by the State
Government.
Section 37-Direction by Appropriate Government
Section 108 Direction by a State Government,
Section 131,Debundling of Generation, Transmission and
Distribution of Electricity under Companies Act,1956 (1 of 1956) as
Government Company.
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Bharatiya Udhami Avam Upbhokta Sangh
We are very much obliged as Commission has appointed us as Consumer
Representative the under Section 94 (3) of The Electricity Act,2003 on 17th May,2010
And allowed to make our presentation in the issue
Pertaining to Government Memorandum dated 7th May,2010 after the receipt of from
Reliance Infrastructure Limited, who are not recognised by the State Government as
Distribution Licensee under the erstwhile the Indian Electricity Act,1910 as on 10th
June,2003 and also not deemed Licensee under First, Proviso of Section 14 of the
Electricity Act,2003 as they came into existence on 28th April,2008 under Companies
Act,1956 (1 of 1956) vide Section 21. ???
They are not provided the License under the Electricity Act, 2003 or under Section 3 of
the Erstwhile Indian Electricity Act,1910 by the State Government / Commission as the
case
may be. The Government erred in issuing the Memorandum.
`
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Bharatiya Udhami Avam Upbhokta Sangh
Madhu Compound,2nd Floor, 2nd Sonawala Cross Road,
Goregaon (E),MUMBAI-400063
rakshpal.abrol@yahoo.co.in
Mobille: 9820203154
The Advice or Direction issued by the Government of Maharashtra and also
Forming the Committee is unconstitutional for the issue already settled by the
Supreme Court on 8th July,2008, 8th May, 2009 and all the power vest.
With the Maharashtra Regulatory Commission after its formation in the year 1999
Under ERC Act,1998 and there after the enactment of the Electricity Act,2003 with
Effect from 10th June,2003.
In respect of Licenses for Distribution, Transmission of Electricity, State
Government has no power to issue the direction for allocation of Power to Any
person or any Corporate body.
The Reliance Infrastrucutre Limited (Reliance Energy Limited) issue of Both the
Licenses i.e. Distribution & Transmission are Sub-Judice at S.C 4125 of 2007 as
Civil Appeal filed on 6th day of July,2007 & matter is Admitted
- PRAYERThe HON'BLE COMMISSION SHALL PASS THE ORDER AS DEEM FIT
IN THIS ISSUE BEING FILED BY RELIANCE INFRASTRUCURE LIMITED.
THANKS
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