RInfra will be able to recover dues from all consumers | business | Hindustan Times
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RInfra will be able to recover dues from all consumers

Reliance Infrastructure will be able to recover from all its consumers the Rs 350-crore rebate it gave to high-end users between 1999 and 2004 to discourage them from switching to Tata Power Company (TPC).

business Updated: Aug 19, 2010 02:42 IST
HT Correspondent

Reliance Infrastructure will be able to recover from all its consumers the Rs 350-crore rebate it gave to high-end users between 1999 and 2004 to discourage them from switching to Tata Power Company (TPC).

This despite telling the Supreme Court that it would not burden its consumers further.

RInfra insiders said with the SC dismissing TPC’s appeal and upholding the Appellate Tribunal of Electricity (ATE) ruling that the rebates offered were legal, the Maharashtra Electricity Regulatory Commission would add the amount to RInfra’s annual revenue requirement to recover the dues.

RInfra spokesperson was not available for comment.

A company official told Hindustan Times that though it was not possible to recover the rebate amount from those consumers who got the benefit, the commission had included the amount as part of the tariff order in October 2006 for recovering it from “all categories of consumers.”

"Now since the TPC appeal is dismissed and ATE judgment survives, the commission will again include the said amount in RInfra’s annual revenue requirement for recovery from all categories of consumers," the official added.

RInfra officials also dismissed reports that appeared in some sections of the media that the firm would not recover its dues.

This means RInfra's 28 lakh suburban consumers will have to pay extra whenever the commission approves the company's annual revenue requirement for next year.

The commission had termed the rebates illegal and added them to RInfra's earnings and reduced tariff for all consumers.

The ATE, however, said that the rebates were legal following which the TPC moved the Supreme Court.

RInfra's demand to recover Rs 2,000 crore under several heads is pending with the commission. RInfra spokesperson had said the amount would be recovered through the annual revenue requirement, which determines the tariff.

But consumers may not feel the pinch immediately because RInfra has not filed its annual revenue requirement with the commission for next year.

After the firm files the annual revenue requirement factoring in the money it needs to recover and presents the tariff rate to help it do that, the commission will decide on the hike.