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Fight of Common Man - For his Right towards Affordable Electricity “My Home India – An NGO”

Fight of Common Man - For his Right towards Affordable Electricity “My Home India – An NGO” Parag Deodhar. My Home India An NGO working towards strengthening the eternal bond of fraternity between North East India and the rest of the country.

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Fight of Common Man - For his Right towards Affordable Electricity “My Home India – An NGO”

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  1. Fight of Common Man - For his Right towards Affordable Electricity “My Home India – An NGO” Parag Deodhar

  2. My Home IndiaAn NGO working towards strengthening the eternal bond of fraternity between North East India and the rest of the country. • Electricity A Bare Necessity in today’s Environment • Lots of News pertaining to Power Issue in Mumbai • Common People are facing huge tariff shocks every passing Year • Corporates are enjoying Monopoly in generating and distribution segment of Electricity business

  3. Who serves Common Man…..? • 28 L consumers • 24 L Cross Subsidised Consumers • 0.5 L consumers • 0.25 L Cross Subsidised Consumers • 10 L consumers • 3 L Cross Subsidised Consumers It is clear that Common Man is only served by Reliance and BEST

  4. Power Scenario in Mumbai…. Unfolding of the Story • Tata Power was bulk supplier of electricity in Mumbai since last 80years • Major power requirement of Mumbai city catered by Tata Power and it continued even after enactment of E. A. 2003. • Power was supplied to all distributing licensees in Mumbai at Regulated rates only. • No Power Purchase Agreement ( whether short term or long term ) was required till 2005 MERC’ order. • Common man as consumer in Mumbai always enjoyed reliable and uninterrupted power supply at affordable tariff. • Creating a healthy and win-win situation for all concerns and parties. • This scenario continued till 2007. End of a Happy Era

  5. Changing Mumbai into Battleground...What happened in 2006? • Tata Power decided to allocate Power (higher quantum) to BEST and their own distribution arm with no regards to Suburban consumers requirement. • MERC regulatory body decides to remain a mere spectator. • In a power deficit Mumbai one company had huge deficit of Power allocation and other two Companies have surplus power • Obviously huge tariff increase to Suburban consumers and the fight for power reaches Supreme Court

  6. Competition ??? • In 2008 Hon’ble Supreme Court clarified that TPC could supply to retail customers. • Immediately Tatas gave a roll out plan for laying their network in areas primarily in Suburbs & that too near commercial establishments… Why so… MERC didn’t ask? • Luckily MERC directed Tatas to use existing licensee’s network by paying wheeling charge but choose to keep Cross Subsidy Surcharge for some other day • It was immediately observed that there was smooth migration of customers in suburb for industrial and commercial categories…. Tata’s Marketing Team at work • Residential consumer migration was discouraged on various grounds… No need to give evidences towards this… It was done purposefully at the counters • Airport gets migrated on first day… How come ? Was Tata talking them earlier? • Residential Consumers did not migrate as no substantial benefit was offered to them…. Why?. Tata was working for Malls, Airports all these days? But MERC too was ignoring this? Why? • Also migration is happening only in area of one Distribution licensee ( Suburb )…. Why so… MERC should ask ? MERC aiding Tatas in “Cherry Picking”

  7. Competition gave following Statistics • 40,000 consumers have migrated from Reliance to TPC during last 6 month • 1200 Million Units are Migrated but from where? Cross subsiding 90% Cross Subsidized ( Common Man)  10% Only Big Fishes Jumped Out…….. Small One remain in the same Pond Sir… I am sure this is not the type of Competition you had thought of

  8. Competition should benefit Common Man….. All sitting in this room will definitely agree on this

  9. We know MERC is committed to control Tariffs for Common Man in Mumbai- What they can do in Current Situation? • In Changeover Process …. Balance Cross Subsidy Introduce Cross Subsidy Surcharge on Commercial Consumers migrating to Lower Tariff option • Mumbai Power to remain in Mumbai only. Surplus power to be offered within Mumbai city at Average cost of power. • Implement Uniform Retail Tariff for Mumbai city which is expected to give relief to 98% of Mumbai Consumers.

  10. Uniform Retail Tariff • Mumbai – only city in India where in differential treatment in terms of tariff is given to consumers having same category in the same city. • Since last 7 years URT is successfully implemented in Delhi entire distribution area irrespective of Distribution Company. • Uniform Retail Tariff will create a perfect platform for service based competition. • All the customers will have choice to select the service provider based on quality of delivery.

  11. Thank you

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