Bharatiya Udhami Avam Upbhokta Sangh Presentation in the Matter of Case No13 of 2010 By Raksh Pal Abrol At RANG SHARDA Natya Mandir, BANDRA (W) on 28-06-2010

Bharatiya Udhami Avam Upbhokta Sangh

Presentation in the Matter of Case No13 of 2010 By

Raksh Pal AbrolAt RANG SHARDA Natya Mandir, BANDRA (W)

on28-06-2010

In the Public Hearing organised by CommissionAbout the Memorandum

No. TPC-2010/CR-131/NRG-1 Dated 7th May,2010Industries ,Energy and Labour Department

Duly signed by Secretary(Energy),Government of Maharashtra

AndLetter dated 05,MaY,2010 of Reliance Infrastructure Limited,

signed byShri. Lalit JALAN

C.E. O. & DIRECTOR1


Background :-The undersigned Raksh Pal Abrol, President of Bharatiya Udhami Avam Upbhokta Sanghhas been authorised by the Commission under Section 94 (3) of the Electricity Act, 2003as Consumer Representative on 17th May,2010 in CaseNo.13 of 2010.Vide Letter No.MERC/LEG/Case No.13 of 2010/00318.Section 94 (3) The AppropriateCommission may authorise any person, as it deem fit, to represent the interest of theCONSUMERS in the proceeding before it.Under MERC (Conduct of Business) Regulations dated 10,June, 2004 As per Regulation 18 the Commission may permit any person, including any Association or other bodiescorporate or any group of consumers, to participate in any proceedings before theCommission.In this Commission may if it consider necessary - (a)Notify a procedure for recognition of Associations, groups, forums or bodies Corporate as registered association for the purposes of representation before The Commission;(b) appoint any Officer or any other person to represent the consumers' interest in the proceedings before it, on such terms as to fees, costs and expenses by such parties in theproceedings as consider appropriate.

Therefore as appointed the Consumer Representative Undersigned proceed in the Issue

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Bharatiya Udhami Avam Upbhokta SanghThe Power and Functions of State Commission have been defined under Chapter V.THE MAHARASHTRA ELECTRICITY REGULATORY COMMISSION(MERC) came into EXISTENCE IN THE YEAR 1999.The state government did not disclose that said organisation is not having the distribution license on their name at the time of issue of Notification for delegating the power to MERC.This information was received under Maharashtra RTI Act,2002 on 16th December,2005 vide LetterNo REL/0405/CR-279/NRG-1 on written Application dated 17th November,2005.The MERC also informed under RTI Act, 2002 vide their letter No. MERC/142/Amendment LicenseConditions/ 2013 dated 05th October, 2005 that no separate license has been issued to RelianceEnergy Limited (Erstwhile BSES Limited).The MERC vide their letter No. MERC/RTI Case 25/2008 /1291 dated 24th June,2008 have informed under Right of Information Act,2005 that Commission has not authorised Reliance Infrastructure Limited for distribution of Electricity.Under the Provisions of the erstwhile ERC Act,1998, the State Government has delegated the power to State Electricity Regulatory Commission by issue of Notification published in the Official Gazette.The Said ERC Act,1998 ,Indian Electricity Act,1910 and Electricity (Supply) Act,1948 were repealed vide issue of the Electricity Act, 2003 (36 of 2003) on 10th June, 2003The power of the State Government for changing over the name or any other changes did not sought by the existing Distribution Licensees and Transmission Licensees .The said issue is a violation of the IEA !910.The Commission was not authorised to issue any License for One year and as such could not be transferred by Retrospective effect or transferred by Appropriate Commission as on 10th June,2003.

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BACKGROUND:The Distribution Licensee named Bombay Suburban Electricity Supply Limited was holding the Bombay Suburban Electric License,1926 Under the Provisions of the Indian Electricity Act,1910 (9 of 1910) To distribute Electricity to Consumers for all purposes in the Licensed area earmarked in the said license.

The Government of Maharashtra has amended the said license On 30 May,1992 for carrying out generation 500 MWThe said power generated should be supplied to the Consumers in Mumbai suburb.They were to bring the power by transmitting at their own & were toExecute the Inter connection with TEC at Borivali As per the approval of C.E.A. New DelhiThe said license was validated up to 15th August,2011 VideLBY-1390/CR-1609/NRG-2 dated 30/05/1992 4


The Bombay Suburban Electric Supply Limited changed its name to BSES Limited on 23rd December,1992.The Said Organisation did not approach the Government under Section 9(2) Of the Indian Electricity to get the Licensed changed to BSES Limited.The BSES Limited filed their Tariff Approval and made effective from1st August,1994 to distribute the Electricity without obtaining the License under the Indian Electricity Act,1910 as required.The State Government did not take any Action and without following the due Proceed of Law approved the Tariff from 1st August, 1994.The were also allowed to collect the Excise Duty under Bombay Electricity Act,1958 as Licensee under the Indian Electricity Act,1910 They were also allowed to take rebate under Section 4(4) of the said Act, as well under the Maharashtra Tax Laws (Levy & Amendment) Act,1988 the Tax on Electricity (TOSE). Without following the established law of the land.

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Bharatiya Udhami Avam Upbhokta SanghTHE ABOVE NAMED UTILITIES DID NOT SIGN THE POWER PURCHASE AGREEMENT (PPA) WITH TATA POWER COMPANY LIMITED AS PER THE PROVISIONS OF THE INDIAN ELECTRICITY ACT,1910.

THEY DID NOT ENETRED INTO THE CONNECTION OF POWER SUPPLY ATBORIVALI AS PER THE CONDTITIONS LAID DOWN 0N30TH MAY,1992 AND THE APPROVAL OF CENTRAL ELECTRICITY AUTHORITY.

IN THE YEAR 1995,THERE WAS WESTREN GRID FAILURE.

THE ABOVE NAMED ORGANISATION WAS NOT BRINGING THE POWER TO MUMBAI AREA AND WERE NOT THE MEMBER OF WESTREN GRID.

THE CONSUMERS OF SUBURBAN MUMBAI LEFT HIGH & DRY.IT WAS 2ND TIME

FIRST FAILURE WAS ON 18, 23, 29 MAY,1992.THE GOVERNMENT DID NOTHING TO PROTECT THE INTEREST OF THE CONSUMERS.THE PARLIAMENT ENACTED THE ELECTRICITY REGULATORY COMMISSION ACT,1998 (14 OF 1998) on 2nd July,1998

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Bharatiya Udhami Avam Upbhokta SanghThe Government has collected this duty to the tune of Rs.1190.81 2005-06 1450.02 2006-07 1903.00 2007-08 2401.00 2008-09 Rs. 6545 CroresThe Government also collecting Tax under Maharashtra Tax Laws(Levy and Amendment ) Act ,1988 as Domestic and Non Domestic as 19 paisa/23 paisa per unit consumed.

These additional amount paid goes for development of Generation, Transmission and other expenses excluding the Tariff fixed for Consumption of Electricity

Now the duty rate have been enhanced from 1st February,2010. The Tariff Rate has been made effective of TPC from 1st June,2009.

The Tariff Rate effective of RINFRA has been stayed of 15th July,2009 under Section 108.

The Change over is effective from 15th October,2009 in Mumbai after the Order dated 8th July,2008 And 8th May,2009 of Supreme Court by MERC.

Imposition of Section 11, Section 60 Section 108 is not mandatory

The RINFRA misguided the Commission about Classification as Indian Rules,1956 not repealed. The State Government did not initiated any proceeding against the said organisation during the period of 3rd March,1997 to 30th June, as they not only violated the prevailing law but also received less Electricity duty from Residential, Commercial ,Industrial and HT Consumers

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Bharatiya Udhami Avam Upbhokta SanghThe State Government has collected the Electricity Duty from all the Consumers of Maharashtra through the Distribution Licensees to meet the Power Generation Companies ,Transmission & Distribution of Electricity Duty less the Rebate granted to BSES Limited without having License on their name.

Again the Tariff dated 1st March ,1997 was approved by the Government of Maharashtra, wherein the Consumers consuming the Electricity above 350 Unit per Month were denied the Slab Exemption and were charged Rs.3.38 per unit from 1st Unit.

The BSES Limited had collected more than Rs.148 Crores from the Consumers under the guise of Development Funds under THE PROVISIONS OF I NCOME TAX,ACT,1961,WHICH WAS NOT ALLOWED AFTER THE 31ST MARCH,1990 Vide Notification No. S.O. 233(E) dated 19 th March,1990 under SECTION 32 A (SB) (b) to discontinue Investment allowance In respect of Machinery or Plant installed after 31-.03-1990 THE STATE GOVERNMENT ALLOWED THE SAME WITHOUT THE AUTHORITY OF LAW.

IT WAS CHALLANGED VIDE WRIT PETITION No. 2125 OF 1998 THE SAID PETITION WAS OPPOSED BY THE STATE GOVERNMENT TOO.

THE PETITION WAS ADMITTED ON 17TH NOVEMBER,1998 & also one more Petition is admitted where in Flat rate were admissible To Residential Consumer crossing 350 Units per month by the Tariff approved on 1st March,1997 by the State Government.

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The Electricity duty was 12% for Residential, 13% for Commercial, 6% for Industrial And HighTension Consumers under the Bombay Electricity Act,1958

The said Company had their own Tariff with Maximum Rate of RS.2.72 per Unit Applicablefrom 1st March,1997 till 30 the June,2004 for certain Consumers.

The State lost about Rs. 5000 CroresResidential Consumer paid Rs.0.3264 in place Rs.0.4056 loss 80.47%Commercial Consumer paid Rs.0.3536 in place Rs 0..6058 loss 58.47%Small Industries paid Rs. 0.163 in place Rs. 0.228 loss 28%Large Industries paid Rs. 0.1632in place Rs. 0.2862 loss 57%HT Consumer paid Rs. 0.1632 in place Rs.0.2328 loss 70%

The Government could not arrest the situation well known & one of Govt. Employee Wasnominated Director.

The Public lost the trust in the State Government & Central Government enacted.The Electricity Regulatory Commission under ERC Act,1998.

The Electricity Commission had appointed Consumer Representative under Section 26 of thesaid Act.The Undersigned was made Intervener as per the letter IEA /9097/CR9270/NRG-9Dated 13th June,2002.

The letter is attached9


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Power of the State Government has been made Limited under Section 11 Direction to generating Companies, Section 31 (1)Constitution of State Load Dispatch Centres and said State Load Desptach Centre shall be operated by a Government company or any authority or corporation established by the State Government.Section 37-Direction by Appropriate GovernmentSection 108 Direction by a State Government,Section 131,Debundling of Generation, Transmission and Distribution of Electricity under Companies Act,1956 (1 of 1956) as Government Company.

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We are very much obliged as Commission has appointed us as Consumer Representative the under Section 94 (3) of The Electricity Act,2003 on 17th May,2010

And allowed to make our presentation in the issue Pertaining to Government Memorandum dated 7th May,2010 after the receipt of from Reliance Infrastructure Limited, who are not recognised by the State Government as Distribution Licensee under the erstwhile the Indian Electricity Act,1910 as on 10th June,2003 and also not deemed Licensee under First, Proviso of Section 14 of the Electricity Act,2003 as they came into existence on 28th April,2008 under Companies Act,1956 (1 of 1956) vide Section 21. ???

They are not provided the License under the Electricity Act, 2003 or under Section 3 of the Erstwhile Indian Electricity Act,1910 by the State Government / Commission as the case may be. The Government erred in issuing the Memorandum.`

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Bharatiya Udhami Avam Upbhokta Sangh Madhu Compound,2nd Floor, 2nd Sonawala Cross Road,

Goregaon (E),[email protected]

Mobille: 9820203154

The Advice or Direction issued by the Government of Maharashtra and alsoForming the Committee is unconstitutional for the issue already settled by theSupreme Court on 8th July,2008, 8th May, 2009 and all the power vest.

With the Maharashtra Regulatory Commission after its formation in the year 1999Under ERC Act,1998 and there after the enactment of the Electricity Act,2003 withEffect from 10th June,2003.

In respect of Licenses for Distribution, Transmission of Electricity, StateGovernment has no power to issue the direction for allocation of Power to Anyperson or any Corporate body.

The Reliance Infrastrucutre Limited (Reliance Energy Limited) issue of Both theLicenses i.e. Distribution & Transmission are Sub-Judice at S.C 4125 of 2007 as Civil Appeal filed on 6th day of July,2007 & matter is Admitted

- PRAYER-The HON'BLE COMMISSION SHALL PASS THE ORDER AS DEEM FIT IN THIS ISSUE BEING FILED BY RELIANCE INFRASTRUCURE LIMITED.

THANKS 20

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Bharatiya Udhami Avam Upbhokta Sangh Presentation in the Matter of Case No13 of 2010 By Raksh Pal Abrol At RANG SHARDA Natya Mandir, BANDRA (W) on 28-06-2010