Karnataka escoms oppose Tata Power bid for distribution licence

Tata Power has also stated that it will supply power to high-end consumers, including industries and the commercial sector, leaving behind residential consumers.
Image used for representational purposes only.
Image used for representational purposes only.(File Photo | Express)
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BENGALURU: The Electricity Supply Companies (escoms), including the Bangalore Electricity Supply Company Limited (Bescom), on Tuesday filed independent objections before the Karnataka Electricity Regulatory Commission (KERC) against Tata Power.

Tata Power had applied for a private distribution licence in some districts falling under the jurisdiction of Bescom (Bengaluru), Hescom (Hubli-Dharwad), CESC (Mysuru) and Mescom (Mangaluru) on May 26. Since then, many resident welfare groups, electricity workers’ associations and farmers’ associations raised objections against the proposal on multiple platforms. This is the first time the Escoms are making public their apprehension.

The escoms have submitted documents running into more than 75 pages before the KERC late on Tuesday evening.

A Bescom official, who did not want to be named, said, “In the petition, we have highlighted that Tata Power has made no specification about a parallel distribution network, which is required as per the Electricity Act. Tata Power has mentioned that they will purchase power from the grid and open sources for supply. This will affect the consumers in the long run and also does not ensure round-the-clock power supply.”

The official said there is also no clarity about the long-term power distribution and purchase agreements. On the other hand, the escoms have entered into long-term agreements to supply power till 2035.

Tata Power has also stated that it will supply power to high-end consumers, including industries and the commercial sector, leaving behind residential consumers.

This is cherry picking and being profit-oriented, rather than service-oriented, the official said, adding that they were also not clear on the establishment of a distribution network in the chosen locations, which is also a concern, the escoms said in their objections.

According to the procedure, the KERC will receive all objections, assess them and then call for a public hearing. The Bescom official said, “We have raised some objections in the petition today. Some more will be raised in the public hearing. The KERC is yet to announce the dates. All stakeholders, including Tata Power, will be given an opportunity to voice their opinions and present their case before a decision is taken by the KERC.”

It may be noted that while private companies are involved in power supply distribution in other cities and states, including Delhi, Mumbai and Odisha, it is the first time a private company has applied for a power distribution licence in the state.

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