Financial Daily from THE HINDU group of publications
Wednesday, Oct 01, 2003
Financial Daily from THE HINDU group of publications Wednesday, Oct 01, 2003 |
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Corporate
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Outlook Reliance Energy not to raise tariffs if Tata Power cuts prices Our Bureau
Mumbai , Sept. 30 RELIANCE Energy Ltd (erstwhile BSES Ltd), on Tuesday told the Maharashtra Electricity Regulatory Commission (MERC) that it would not raise retail tariffs if Tata Power Company (TPC), from which its buys electricity in bulk, agrees to cut power prices. Pegging the shortfall in its annual revenue requirement (ARR) for 2003-04 at Rs 145 crore, REL said at current rates it would have to raise average tariffs by about 5.8 per cent, which means average retail tariffs would go up from Rs 3.94 per unit to Rs 4.17 per unit. REL has suggested that TPC reduce its fixed charge component of Rs 1.36 per unit (excluding sales tax) in its bulk supply tariff to Rs 0.63 per unit. REL said if TPC reduces tariffs as suggested, the level would come down to Rs 2.50 per unit and its purchase cost would come down by Rs 263 crore. This would not only help bridge the revenue shortfall but also allow REL to offer lower tariffs to its customers, it said. TPC and REL have been accusing one another of poaching each other's customers. TPC said that REL has been offering illegal rebates in the form of differential tariffs to consumers. TPC officials said that REL is even resorting to offering tariffs below cost to lure customers. Meanwhile, REL's 250 MW unit at Dahanu tripped today morning, reportedly due to over-utilisation. REL officials were unavailable for comment. An unnamed TPC official alleged in a statement released through the company's public relations agency that REL has not been maintaining grid discipline. The statement said an expert committee of the Central Electricity Authority had recommended that REL should maintain at least 10 per cent "spinning reserve" on its generating units to for safe islanding. "However, contrary to the suggestion, REL has not been maintaining the reserve," the statement said. The TPC official said the company has stepped up power generation from its units and has moved MERC to intervene and direct REL to maintain 10 per cent spinning reserve on its Dahanu units.
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