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BEST recommends TDLR extension till 2019

Consumers, who have switched from Brihanmumbai Electric Supply & Transport (BEST) to other power companies in a bid to save money, might not be able to reap benefits, as the undertaking has filed a pe

Consumers, who have switched from Brihanmumbai Electric Supply & Transport (BEST) to other power companies in a bid to save money, might not be able to reap benefits, as the undertaking has filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) demanding that private companies like Tata and Reliance Infra be asked to charge their consumers for the transport loss incurred by the undertaking.

The BEST has been struggling to keep its power consumers, since these firms have entered the business of supplying electricity. The undertaking has been distributing power generated by Tata in the island city, but Tata and Reliance Infra still use the BEST’s distributing mechanism to supply power to their own consumers.

The MERC allowed the BEST to charge its consumers the transport deficit loss recovery (TDLR), since its transport wing was bleeding money, this was to end by March this year. Now, the BEST has suggested that not only its customers but also consumers of Tata and Reliance Infra should pay TDLR till 2019.

The BEST committee that was shown the petition for approval in a meeting held on Tuesday was left fuming as it said that it had not been consulted before the BEST management submitted the petition. Committee member Ravi Raja said that this move on the part of the management was not acceptable. “We had heard from others that it had submitted the petition, even though we had repeatedly asked BEST to talk to us before taking any steps. As far as TDLR is concerned, we weren't consulted,” he said.

Other members like Kedar Hombalkar said the common man, who had been promised no more TDLR from March, would not accept this. “Here the only thing being told to us is that we will earn Rs 5,500 crore from now to 2019 (if constomers are charged TDLR). Since the past five years we have earned Rs 3,600 crore. Didn’t we know that we would have to think of a way to replace TDLR Why were we told that TDLR wouldn’t be there anymore ” he asked.

Committee members like Mr Raja, Shivji Singh and Mr Hombalkar walked out of the meeting in protest.

BEST general manager, Jagdish Patil said that he was aware that extending TDLR was a sensitive topic, but said that all the other options would take too much time and could not replace it by March. “The option of taking property cess from consumers twice in a year will take a long time time, as the government had some technical doubts, which we have clarified. Though the BMC has put up the clarification, we are not sure if it will be implemented in time. It will take a long time to be processed. Our other plans like electricity duty is also being considered and monetisation of assets is still a long way off as well,” he said.

Mr Patil then said that it was high time that the situation be looked at realistically, as TDLR was the only thing keeping the undertaking afloat. “Let’s be blunt, if TDLR is not taken, we cannot survive. We won’t be able to run the BEST anymore,” he admitted.

He said that the petition could not be taken back but suggestions could be added to future drafts.

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