Tata gets go signal to service south Mumbai

Tata Power may lay down its own network in south Mumbai and supply power to consumers in the area.

This was after the Appellate Tribunal for Electricity has upheld the order of Maharashtra Electricity Regulatory Commission allowing Tata Power to do so, reports the Hindu Business Line.

The Brihanmumbai Electric Supply and Transport, which is run by Mumbai Municipal Corporation, had challenged the MERC decision to allow the private player to supply power in south Mumbai, and to develop its distribution system. Earlier, BEST enjoyed monopoly in the island city.

The tribunal rejected BEST’s case, saying that it was against the spirit of the concerned law which seeks to promote competition in electricity sector.

“The stand of the BEST debarring Tata Power Company from supplying electricity to the consumers in its area of supply and from developing distribution network in its area of supply, cuts at the root of legislation that provides, an act, for taking measures conducive to development of electricity industry, promoting competition, protecting interest of consumers. In the light of the above legislation and its purpose and objective, the stand of BEST is not only deserved to be rejected but needs to be severely deprecated,” it said.

The tribunal admitted that both the players would be forced to supply electricity in the same area of the island city, but said, “It has to be held that Tata Power is entitled to supply electricity in retail directly to the consumers situated in its area of supply, which includes appellant’s area of supply.”