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VOICE OF ELECTRICITY WORKERS
TATA, RELIANCE TIE UP FOR STUDY ON POWER
Power Play
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The study has been commissioned
by the Maharashtra Electricity Regulatory
Commission
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It will deal with the
introduction of competition in electricity distribution as
provided under the electricity Act, 2003.
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Reliance Energy and Tata Power
have been called upon to file the terms of reference for engaging a consultant
to study the various modalities involved in ushering in open access.
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Both have submitted applications
to the MERC for acquiring distribution licences in some of the lucrative circles
in Maharashtra.
Private Power firms Tata Power
and Reliance Energy are working together on a study for the opening up of the
power distribution sector in Maharashtra.
The study has been commissioned by the state power regulator- the Maharashtra
Electricity Regulatory Commission (MERC) - and will deal with the introduction
of competition in electricity distribution as provided under the Electricity Act
2003.
The regulator has called up on the two private power firms for engaging a
consultant to study the modalities involved in introducing open access.
Both Tata Power and Reliance Energy have submitted applications to the MERC for
acquiring distribution licences in some of the lucrative circles in the state.
While considering the applications, the MERC will have to deal with Section 14
of the Electricity Act:2003, which provides for the grant of a second
distribution licence for an area already being serviced by a utiltiy.
This means that an application for a second distribution licence in Maharashtra,
since they are the only two distribution zones existing in the state.
Tata Power has applied for supplying power directly to consumers in the Navi
Mumbai, Pune, Bhandup, Vashi, Lonawala and Khopoli circles in Maharashtra.
Reliance energy has applied for supplying power to the posh South Mumbai area,
Navi Mumbai, Nagpur, Pune, Aurangabag and Nasik circles in Maharashtra.
The move by the two private power utilities in the state is expected to provide
stiff competition to the state - owned Maharashtra State Electricity Board(MSEB).
MSEB is the sole supplier of power, with the exception of Mumbai, to consumers
in Maharashtra.
This includes the Navi Mumbai, Pune, Bhandup, Vashi, Lonavala and Kopoli cirlces,
for which Tata Power has applied.
Courtesy: Business Standard: 15.3.2004
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