The Bangalore Electricity Supply Company Limited (BESCOM) has filed a petition with Karnataka Electricity Regulatory Commission (KERC) against the Tata Power Company Limited’s (TPCL) application with the KERC seeking license for parallel distribution of electricity in 19 districts.

In the petition copy, available with The Hindu, Bescom has raised objections pointing out to legal noncompliance, network deficiency, consumer protection risks and competition concerns, among others.

A senior official from Bescom confirmed about the petition and said, “We don’t want TPCL to be using our already developed infrastructure and supply electricity to brownfield (developed industrial and urban areas) and greenfield (peripheral and newly developing areas) areas. According to the Electricity Act 2003, they must have their own infrastructure in place and it is not possible for them to build it in 30 days after the approval of licence. The TPCL has said so in its application while seeking licence.”

The petition states that TPCL wants to enter profitable markets without bearing the full obligations of a distribution licencee and rely on Bescom’s infrastructure instead of building its own. The power utility argues if the license is approved, it violates both the letter and spirit of the Electricity Act, 2003.

Bescom said TPCL has not met the mandatory requirements for a parallel licence.

The petition read, “TPCL must showcase that it possesses adequate power reserves and network to fulfil its supply obligation under the Act. The TPCL’s application predominantly relies and depends on the ESCOMS network to supply power as a distribution licencee through open access. In the event a new consumer in the brownfield areas requires connection, the TPCL cannot compel BESCOM to extend its network to the new consumer’s premises in order to supply power in open access. For the next three years, even in the greenfield areas , the TPCL is in no position to supply power to a new premise of a consumer within 30 days for it is practically impossible to build a distribution network from the end point of transmission licencee’s substation to the point of new premise of the consumer. .” TILL HERE

Further, Bescom stated that TPCL has “cherry picked” its consumers by targeting only industrial and commercial consumers in profitable corridors while leaving it with low-paying consumers who require subsidies. This violates the National Tariff Policy’s principle against cherry-picking, said the power utility.

Section 86(b) empowers KERC to regulate electricity purchase and procurement. However, TPCL’s plan to rely heavily on short-term market purchases undermines this regulatory function, preventing the Commission from protecting consumer interests. This way, TPCL can increase the prices of electricity as and when it wants to do so, it argued.