New entrants set to change power game…….Chittaranjan Tembhekar
MERC may open suburbs to at least 3 new suppliers
Mumbai: There may come a time in the near futurepossibly mid-2011when suburban Mumbaikars can choose their power supplier based on tariff,reliability,etc.Instead of two companies,there will be as many as three new power providers in the market.If all goes as planned,it may be as simple as selecting a cellphone operator,only in this case,instead of a chip,you get a meter free of cost with the promise that your money will be refunded in the event of a blackout.Maharashtra Electricity Regulatory Commission (MERC) has indicated that it will consider allowing multiple power suppliers operating within suburban Mumbai.
According to sources,eight biddersMSEDCL,Torrent Power,DPSC Ltd (Kolkata),Lanco Infrastructure,GMR Energy,Indiabulls Power Ltd,TPC and Enzen Global Solutions (Bangalore)have expressed an interest in supplying electricity to suburban Mumbai.The companies have reportedly been asked to submit their bids before December 26,2010.Regions within Mumbai will be allocated to the new companies,and the grid will literally be redrawn.The R-Infra-dominated suburban Mumbai consumes over 2,100 MW power,and demand is only rising.At present neither R-Infra nor Tata Power Company (TPC) can meet that demand.TPC supplies 500 MW of power to suburban Mumbai300 MW is supplied to its own consumers and 200 MW to the R-Infra client base.R-Infra supplies another 500 MW generated from the Dahanu Power Plant.To bridge the demandsupply gap,R-Infra buys over 600 MW of high-cost power from outside the state.This burden is transferred to suburban consumers,which has resulted in Mumbaikars paying the highest tariff in India.
The stage is set especially as R-Infras licence term ends in August 2011.Sources said that a a meeting on Monday,the eight aspiring bidders who want to take over R-Infras supply end of the business discussed a proposal with MERC Chairman V P Raja.Raja and other MERC members believe that the demand for power in Mumbai may cross 4,000 MW from the existing 3,100 MW, said the source.
R-Infra has applied for a renewal of its existing licence,but has not bid for the right to distribute power.If some of RInfras existing areas are distributed to new suppliersMERC is legally entitled to redraw the supply gridthere will be competition among the new bidders to supply power at low tariff rates,”said a source.The burden of high-cost power that consumers have to bear will reduce.R-Infra,too,stands to gain as it has a vast network that can be rented out.A company spokesperson said: The company is already seeking a 25-year extension for its supply license.The hearing is scheduled on December 3,2010.MERC has advised bidders to apply for a distribution license as per the rules laid down by the law.There are several related issues of concern such as the use of the existing licensees network that have to be addressed.