Mumbai Power Tussle – Competition against Consumer’s Interest

1. Mumbai Power Tussle – Competition against Consumer’s Interest By - Tarak OzHa, Borivali(W) Dated - 28.06.10

2. Competition In Electricity Distribution • Why is Competition Created in Mumbai? To Benefit Consumer ? OR To Benefit Utility ? Is Cheap Power available to Residential Consumers? Is it availed by Commercial Consumers ?

3. Cross Subsidy Consumer Mix Huge Disparity in Cross Subsidized Consumer Mix

4. Cross Subsidy Consumption Mix Huge Disparity in Cross Subsidized Consumption Mix

5. Cross subsidy & Consumer Mix • Reliance Energy’s Cross-Subsidizes 24 lac consumers … • Much more than others • Reliance having Cross Subsidy of approx • Rs 1000Cr, highest among All Three Distribution Company. • Every where else in the Country Cheaper power is made available • to Utility having Large Cross subsidized Consumers to check the • Tariffs Mumbai seems to be exactly Opposite…. Why ?

6. On top of This… What is Newly Introduced Competition Doing ? • Consumers have started Migrating to Tata Power from Reliance Energy • Industrial & Commercial Consumer are Mostly Migrating • I understand 95% Consumption Migrated is this type • Residential Consumers with lower Capacity to pay are left high and dry • I understand 200 Crs more cross subsidy increased on Reliance Energy • I understand that Airport migrated on first day but No slum customer has • migrated till date Has MERC Introduced Competition for Malls / Multiplexes /Airport and such selected Consumers ? Or for Consumers with lower capacity to pay.

7. Power Generated for & In Mumbai (Tata Power and • Reliance Energy) • Total Mumbai Power Demand of Mumbai • Mumbai shortage 600 MW (20%) Power Scenario in Mumbai 2527MW 3100 MW Tariff difference 75 - 100% due inequitable allocation

8. What MERC has done to bring up Generation so that Mumbai is not Power Deficit? Have you recommended at least to the Government of Maharashtra I am raising this because this question is tied up closely with Increasing Tariffs which is your responsibility.

9. MERC can certainly decide on….. Who should get how much power and at what rate and what should be the basis? Should shortage be shared by all three utilities when there is little power in the Country and Cost are exuberant?

10. Monopoly in Generation? - By TATA POWER…. MERC … Pl ask these questions • Why Tata Power Withdraw of 262MW Power from Reliance? • Why Tata Power is withdrawing 500MW from Reliance? • Why Tata Power is Selling Power Outside Mumbai ? • Why Power Deficit is not equally shared? Do not undermine your power – You have the Power to ask questions? If you look down …. Where do we look for justice ?

11. Cabinet Sub committee who have given their studied recommendations says…..

12. Extract From Cabinet Sub Committee Report Page 11 of 36: Chapter-II Page 18 of 36: Chapter-III

13. Extract From Cabinet Sub Committee Report Page 19 of 36: Chapter-III

14. Queries To Be Answered • Should TPC be allowed to sell power outside Mumbai? • Should Migration of High End Consumers Allowed at the • Cost of Cross Subsidized Segment • Should Disparity of Tariff Being continued Irrespective of • same location and same consumer category Wake up MERC … Now the ball is in your court

15. If you do not wake up ? There will be Public-Quack in Mumbai • As Per Report and News Publication, Reliance Tariff May Further Hike2-3 Folds, If Same Situation Persist. • Be Prepared, It May Get Worse this time Or ACT NOW……. Regulate, Control the Situation… Mumbai is Precious for Country

16. You can Regulate by doing….. • Surplus power to be offered first within Mumbai city at • Average cost of power • Levy Cross Subsidy surcharge on migration of • Subsidizing consumers so that Balance is obtained • To execute appropriate PPAs for implementation of • Uniform Retail Tariff • Use of Power Guided Under Electricity Act 2003

17. Thank You