Tata Power offers part takeover of network

“We are willing to take over some parts of the distribution network. We are willing to take over the network and the consumers,” said TPC executive director (operations) S Padmanabhan,addressing a press conference on Tuesday,adding they were willing to take over at book value. This would ensure 2.8 lakh residential consumers from R-Infra automatically get transferred and R-Infra’s load is cut by 130 MW. TPC is looking at Malad and Boriwali areas to ensure “technical ease of transferring” as it had its receiving station there.

The TPC has sought that the state government enable the transfer of part of the R-Infra network to TPC-D (Distribution) and BEST as they have made long-term arrangements of power and can help protect Mumbai consumers from higher tariffs. “(This is a) constructive suggestion. So that it balances responsibility and business,” said TPC executive director S Ramakrishnan.

The TPC said they had informed R-Infra that the non- contractual 500 MW power supplied to them would cease from April 1 as its own customer base was growing and TPC was not legally obliged to supply power as there was no PPA between them. The TPC has received 37,962 changeover applications from the suburbs and areas serviced by the BEST as on March 31,and 29,671 customers,including 28,172 residential,have changed over.

The company planned to use the additional capacity to provide 100 MW to BEST,160 MW to the TPC distribution arm and keep the balance capacity available for future requirements of the TPC’s distribution company.

The TPC has contended that the state’s directives curtail their “fundamental right” to supply power to consumers of their choice and penalizes efficient distribution companies like TPC and BEST by not letting them get required power. It has charged that this would impact investment in the power generating sector. “In fact,we are very shocked at this directive… The action is not supported by an act,” said Ramakrishnan,who added that they had found themselves “being pushed into a corner.”

Of its total capacity,TPC has signed an 832-MW PPA with BEST,487 MW PPA with the TPC distribution arm and was selling the unallocated 458 MW to R-Infra. It also pointed out that there was never any firm PPA with R-Infra. Ramakrishnan also charged that R-Infra did not arrange for power for its customers in spite of a nine-month notice to secure power and approached the state government a few months before April 1 for intervention. “One of the licensees whose obligation is to arrange for power has failed to arrange for power,” he added.