SC allows Tata Power to supply power to retail consumers

The Supreme Court on Tuesday allowed Tata Power Company Ltd (TPC) to supply electricity to retail consumers, whose average consumption was less than 1000 KVA, in Mumbai and its suburbs. A bench headed by Justice Altamas Kabir, while refusing Reliance Energy's contention that Tata Power had licence to supply power only to bulk customers, allowed TPC's plea against the Appellate Tribunal for Electricity (APTEL) order, which held the company did not have a licence to supply electricity to retail consumers. The apex court turned down Reliance's contentions that Tata Power should neither be permitted to provide new connections to retail consumers nor allowed to poach its existing consumers in its licensed area. APTEL had, on 22nd May, 2006, accepted Anil Ambani-run Reliance Energy Ltd's contention that Tata Power did not have a retail licence and could supply power only to bulk consumers. It had also observed that TPC only had a bulk licence and was authorised to sell power only to other distribution firms within their area (such as to REL), although the Maharashtra Electricity Regulatory Commission had earlier held that Tata Power had licence to supply power to even below 1000 KVA customers. MERC had, however, put certain restrictions on Tata Power with a view to creating a level-playing field. REL had approached MERC challenging TPC's right to supply to retail consumers in Mumbai and accused Tata Power of breaching the commission's 3rd July, 2003 anti-poaching order restraining it from offering new connections of less than 1000 KVA. Tata Power, in a statement today, said that it was now "entitled to effect supply directly to consumers below 1000 KVA and is also entitled to supply directly to high end consumers - Factories, Railways etc. We await the full order." While stating that the Supreme Court order had vindicated its stand, as it had been supplying power to Mumbai city and suburbs for more than nine decades now, TPC said: "We at Tata Power are committed to supplying reliable and quality power to Mumbai and welcome the judgment." The dispute between Tata and REL arose after the latter began generating from its own power plants. Earlier, REL used to get power from TPC only for distribution to retail consumers in the metropolis. However, after the entry of REL in generation, TPC had started distributing electricity within the former's area in January 1997.

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