The state has asked Tata Power Company (TPC) to continue supplying electricity to Reliance Infrastructure (RInfra) at a regulated price so that the 28 lakh suburban consumers continue to get power without having to pay too much for it.
The arrangement will be in place until July 1, 2010 because by that time the city’s demand for power is expected to decrease considerably.
Both companies have been asked to arrange for extra power after July 1. Neither company will be allowed to sell power to utilities outside Mumbai.
The cabinet sub-committee headed by Chief Minister Ashok Chavan accepted the recommendations of the bureaucrats’ committee on Thursday evening. The directives were likely to be issued to the companies late on Thursday night or on Friday morning.
The directives that Hindustan Times got to know of through a senior bureaucrat say TPC’s generation arm will not give 160 mega watts to its distribution company (TPC-D). This quantum will instead go to RInfra, which has more low-end domestic consumers.
The island city’s consumers will also get some relief. It has asked TPC-D to give 100 MW to the Brihanmumbai Electric Supply and Transport undertaking because the companies have an agreement.
Rinfra will get 358 MW, 100 MW less than its original demand, from TPC. RInfra will now have a small deficit to plug in summer. Hence the cost that it passes on to consumers will be lesser than expected.
Chief Secretary, J. P. Dange, who headed the bureaucrats’ committee, told Hindustan Times that the matter was resolved in the interest of consumers.
The committee was formed after TPC and RInfra intensified their war for power. TPC had said it would stop supplying 500 MW to RInfra from April 1, 2010, but continued after the government ordered a status quo.
The state has also recommended that TPC’s high-end consumers cross-subsidise power for RInfra’s low-end consumers. The Maharashtra Electricity Regulatory Commission will decide this issue.