This is the presentation I did at MERC's public hearing in the matter of RINFRA's License application for Distribution License in Mumbai. Their present License expires on 15th Aug 2011.

1. MERC’s Public Hearing
in the matter of
R-Infra-D’s application for
Distribution License
Case 65 of 2011
J
Sandeep N. Ohri
U Authorised Consumer Representative
L
sandeep.ohri@ymail.com
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9833097575
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2. Background
• RINFRA is currently operating under the Bombay
Suburban Electric License
– This expires on 15-Aug-2011
• RINFRA had earlier claimed that this License does
not expire
– However MERC has already ruled that it does expire and
that RINFRA must apply for a fresh license
• As per the EA2003, a fresh application is to be made
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– All such applications must be presented before the Public
2 • Hence, we are here today!!
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3. Objectives of EA 2003
• The Electricity Act, 2003 wants:
– To promote competition
– To protect consumer interest
– To develop the power industry
• If Licenses will be given only to companies who
have ‘experience’
– There is no choice but to select from amongst the existing
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players
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L – Which will limit competition
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0 Is this market closed for all new entrants?
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4. What should we consider?
• Matters of Law
– Does the Section / Regulation exist?
– Has due process been followed?
– Is the Authority competent and empowered?
• Matters of Fact
– Is the data submitted, factual?
– Have the events claimed to have taken place, actually
J occurred?
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L – Has evidence been presented and is it sufficient?
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0 But, shouldn’t we care about Track Record?
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5. RINFRA has a POOR Track Record!
• Operating in the comfort zone of a monopoly
– Has not faced ‘competition’ for 80 years (Air India & MTNL
were also once a monopoly – were they the best?)
– In fact, has made every attempt to thwart it!
• The worst power procurement record amongst all
the Mumbai DISCOMs
– Failed to protect its own customers by not securing the
available 500 MW from Tata
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U – Even ASCI pointed out that incredibly high costs were on
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account of absence of an LT PPA
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0 Its irresponsibility is being paid for by Consumers!
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6. Top 5 Projects – all delayed
• Most by a year, some by 3 years!!
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0 This seems to be the ‘standard’ for this Group
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7. No Transparency in Accounts
• Has failed to maintain and submit separate
Accounts for the Mumbai Licensed business
– In complete violation of MERC’s Regulations
• Has also shelved the demerger plan
– We will not know if any funds are being diverted!
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0 Are electricity consumers paying for the METRO?
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8. Just one Technical Issue
• Affidavit signed by Ramesh Shenoy states:
“there are no proceedings pending in any court of
law/tribunal or arbitrator or any other authority, wherein
the applicant is a party and where issues arising and or
reliefs sought are identical or similar to the issues arising in
the matter pending before the commission”
• But RINFRA has already filed an Appeal in ATE in
Case No. 78 of 2010
J – That Order stated that RINFRA’s present License expires
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L – Isn’t this a ‘similar’ issue?
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0 What is the penalty for lying in an Affidavit?
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9. Data to be reconciled
• The Hon’ble Commission to correlate present
submissions, with earlier ARR filings
– Details of Distribution / Transmission projects managed
in the last 5 years (pg 9)
– Average consumers, Quantum of Energy Distributed &
Revenue collected (pg 12)
– Expenses (pg 13)
• Also check what has been submitted in various
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other Petitions (Case 40 of 2009, etc.)
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0 I trust we’re not expected to become Auditors!!
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10. 5Y Business Plan Data
FY 2010-11 FY FY Change in Change in
Parameter
(ARR) 2011-12 2015-16 4 years 5 years
No. of
26,83,887 27,67,528 30,41,741 9.9 % 13.3 %
Consumers
Sale of
7875 6695 8361 24.9 % 6.2 %
Electricity (MU)
Revenue pg 19
5342 4426 5398 21.9 % 1.1 %
(Rs. Cr.)
Capital Base
3313 3864 5932 53.5 % 79.1 %
(Rs. Cr.)
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L Incidentally, the data given on pg 338 is inconsistent with the data on pg 19
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0 Increased Capital Base WILL result in higher tariff
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11. Tamasoma jyotir gamaya
(From darkness unto light)
I sincerely thank the Hon’ble Commission for this
opportunity, the time and their patience!
Thank you !!
Contact: Sandeep N. Ohri
J Email: sandeep.ohri@ymail.com
U
L Mobile: 98 33 09 7575
2 Moderator: http://groups.yahoo.com/group/bijlee
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