Thursday, August 04, 2011

Reliance power is expensive power.

Reliance power is expensive power.

The MERC has inflicted the expensive power on the people of western
suburban area by extending the licensing period of Reliance Infra by
another 25 years. Your report ( DNA, 4/8/11) does not indicate any
reason for disallowing other contenders from power supply to the area.
Reliance does not generate sufficient power to meet the needs of
western suburb. It has failed to avail cheap power of Tatas. As your
report mentions, Tata Power supplies power to industrial and
commercial establishments as well as high-end residential users about
Rs.4 less than Reliance Infra and that Tata Power can supply power to
the entire Mumbai license area. If that is so, the Tatas should be
asked to supply power to Mumbai, or at least to the western suburbs.

Reliance Infra generates only 500 MW and gets additional supply from
others which would be expensive especially during the summer months.
Earlier, it had supplied cheap power to some bulk users and whatever
they lost in the bargain, MERC allowed it to be recovered from
domestic consumers. MERC was supposed to be the guardian of consumer
interest in which role it has failed to do justice. Surprising, rather
unsurprisingly, no political party has taken up cause of consumers.
This should be made a poll issue in the coming Municipal election.  In
the meanwhile, we can hope for justice only from the Bombay High
Court.

http://www.dnaindia.com/mumbai/report_reliance-power-to-charge-users-more-retrospectively-from-2004_1572354

August 4,2011.

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