Cancel REL`s suburban power licence: BEST

  • 04/04/2008

  • Business Standard

The Brihanmumbai Electric Supply and Transport Undertaking (BEST) today demanded that the Maharashtra Electricity Regulatory Commission (MERC) revoke the licence of Reliance Energy (REL) and give BEST the right to supply power to Mumbai suburbs. At present, REL caters to the suburban areas and BEST a major part of the city. Addressing a press conference here, BEST general manager Uttam Khobragade said since REL has failed to comply with power regulator MERC's directive to enter an agreement with Tata Power Company (TPC), its licence should be cancelled. In fact, MERC had asked both BEST and REL to sign power purchase agreements (PPAs) with TPC. Although BEST has already signed such an agreement with the power generating company, REL is yet to comply. "Despite repeated reminders from MERC since 2005, REL has found some excuse or the other to avoid doing so. While giving approval to our PPA in November last year, MERC even warned REL of action if they didn't comply. Five months have passed