Tribunal stays MERC order allowing high end customers in Mumbai to shift to Tata Power

The Appellate Tribunal for Electricity on Thursday stayed regulator MERC’s decision to remove restrictions on consumers of all categories in making a choice of switching to Tata Power distribution services in Mumbai.

Reliance Infrastructure had approached Appellate Tribunal for Electricity (APTEL) seeking grant of stay on portions of Maharashtra Electricity Regulatory Commission’s (MERC) order passed on August 14 last month.

APTEL said there is a prima facie case made out by Reliance Infrastructure to grant the limited interim relief.

“Reliance would suffer a loss because of the fact that there is a possibility of Tata Power to connect with high-end consumers of Reliance directly through Tata Power laid network,” APTEL said in its order.

The parties are at liberty to raise all the connected issues at the time of final disposal of the appeal on October 10, APTEL said in the order.

Reliance Power said, “We welcome APTEL’s order, which is in line with MERC’s earlier view-point. This order will protect 23 lacs low-end subsidised consumers from tariff shock. We welcome competition in the interest of consumers within the framework of the law.”

On the other hand, Tata Power said: “It is disappointing that APTEL has stayed MERC’s order. The choice of multiple distributors in Mumbai was to allow consumers the benefit of the competitive services and prices available through different service providers. The order is awaited, and we will study it on receipt and then decide on next course of action and be able to comment on other details thereafter.”

PTI