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Mumbai , Nov. 14

TATA Power Company on Friday assured the Maharashtra Electricity Regulatory Commission (MERC) that it would "unconditionally" stop supplying power to consumers in rival Reliance Energy's (previously BSES Ltd) territory.

The company's offer comes after long litigation before the MERC on a complaint from Reliance Energy accusing Tata Power of breaching the commission's July 3 anti-poaching order restraining it from offering new connections of less than 1000 KVA.

Reliance had challenged Tata Power's right to supply to retail consumers in Mumbai. It alleged that Tata Power illegally supplied power to Girikunj Industrial Estate in north-west Mumbai and to several consumers elsewhere in blatant violation of the order.

Meanwhile, both Tata Power and Reliance Energy have separately challenged MERC's July 3 order in High Court.

Reliance Energy said in a press release that Tata Power's decision to cut supply to the contentious consumers and "unconditional apologies" offered to MERC "establishes that Tata Power is neither permitted to provide new connections to consumers nor allowed to poach existing consumers of BSES in its licensed area, who have less than 1000 KVA requirements".

A Tata Power release said it had "supplied power to an industrial estate whose load requirement was in excess of 1000 KVA... and to a residential complex which had already availed part supply prior to the MERC order". It said it has given a seven-day notice before withdrawing power supply to the consumers "based on MERC hearing on the above (Reliance Energy's) complaint and in deference to the commission's observations that Tata Power's action was not in consonance with the spirit of MERC's order".

In its affidavit, Tata Power has also accused Reliance Energy of poaching on its consumers such as The Grand Hyatt Hotel, Asian Heart Foundation, ICICI Bank.

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