REL needs Power for its Metro Rail - that's the REAL Shortage !

I guess after reading this headline you've figured out why there is a "shortage" !!

Consider this...
1. Tata generates 1777 MW
2. REL generates 500 MW.
3. REL/BEST get nearly all of their energy requirement from Tata/REL genration only. Total is 2,277 MW (1777 + 500).
4. Vitaran is supposedly supplying 150 MW to Mulund/Bhandup/etc.
5. Hence, Mumbai's total demand-supply is 2,427 MW (2277 + 150).
6. Last summer (April-June 2006) there was no "load shedding" in REL/BEST area.
7. REL serves 25 Lakh consumers in Mumbai.
8. BEST serves 10 Lakh consumers in Mumbai.
9. Tata serves 24,000 consumers in Mumbai.

Now, consider this also...
1. REL projects a 5% increase in energy consumption (in its own MYT petition).
2. BEST projects a less than 5% increase in energy consumption (in its own MYT petition).
3. MERC/REL says Mumbai's requirement has gone to 2,700 MW, an increase of 273 MW, or 11% !

Sounds illogical, right?

If the 2 major suppliers to the city are saying that their energy consumption is going up only 5%, then how come the GAP has grown to 11%??

Assuming that 5% (120 MW) is the normal growth year-on-year, where is the need for the extra 153 MW coming from??

No points for guessing...

This GAP is requirement of REL for constructing and operating its own Metro Rail project.

REL's Metro Rail gets under way this year, partial completion estimated in 2-3 years (i.e. near about 2009-2010).

We were right, since REL is NOT separating its accounts, we cannot figure out what's going on!!

Incidentally, REL's own MYT Petition (upto March 31, 2010) does not show any income from electricity charges receivable from Metro Rail project.

So they're going to be using electricity that YOU and I and the rest of Mumbai city will be paying for through our hard-earned money !!

That's the REAL shortage ... think about it ...anyone has another explanation ??

Well ... and that's how I feel ...

Can MERC approve electricity rates higher than what was Petitioned?

See what MERC has done in BEST's case. BEST petitioned for rates (at the highest slab), ranging from Rs. 5.70 to Rs. 7.20 per unit. MERC has approved rates of Rs. 7.22 and Rs. 9.97 .. by adding another "Reliability Charge."

None of this was brought to the Public's notice. Nothing was discussed in the Public Hearings (I attended all 4 public hearings: Vitaran, TPC, REL, BEST).

Everyday we read in the newspapers, how these "poor, hapless" electricity companies may have to purchase electricity at much higher rates (Rs. 7, Rs. 8 per unit, etc.) in order to "save" Mumbai from Load shedding.

Please correct me if I'm wrong here ...

As I understand it, MERC can fix the tariff - and that too, ONLY after a Public hearing on the same - with 21 days' notice, etc. etc. You all know this by now.

Hence, even if TPC/REL now buy at rates that are higher than what was petitioned by them, how can MERC approve (the resultant) higher consumer rates WITHOUT calling for a public hearing first ??

According to me, MERC can only approve what was in the Petition, as that was what was discussed (Ha!) with the Public.

Got it??

I suspect this is the REAL reason for all this talk of higher purchase rates - just so that MERC can play Santa Claus and "force" these companies to supply only at MYT Petition rates .. and these "poor" disgruntled guys will "grudgingly agree." Exactly, what was done in BEST's case - the same will happen to Tata and REL consumers also!

They all really must take us for fools. But there was a famous saying about, "not being able to fool ALL the people ALL the time."

Think about it.

Feel like doing something about it? Send an email to MERC (see below for text matter).

Well ... and that's how I feel ...

Here's the DRAFT for the email to MERC - CUT AND PASTE IN your "New Mail" or "Compose" window. Please do not forget to add your name, address, email ID, at the end of the text.

Mail to: mercindia@mercindia.org.in
Copy to: snohri2004@yahoo.co.in, chiefminister@maharashtra.gov.in, sk.shinde@nic.in, razdana@ias.nic.in, chairman@cercind.org

===================
===================

14.4.2007

The Secretary,
Maharashtra Electricity Regulatory Commission
Mumbai.

Sub: How can the Hon'ble MERC approve rates that were not discussed in the Public Hearings?

Dear Madam,

I have read in the newspapers that electricity companies are now going to charge rates that are higher than what was mentioned in their MYT Petitions.

I am concerned about the violation of the sanctity of the public hearing process and would like to bring to your attention that Tariff can be fixed only after discussing the proposed rates with the public. The rates approved for BEST have not been discussed in public.

The Hon'ble Commission has just concluded these MYT public hearings and I am opposed to any hike, as the rates have just been hiked only 6 months back, in October 2006.

I request the Hon'ble MERC to NOT approve the proposed rates, especially any new (undiscussed) rates.

Thank you.

Sincerely,


(TYPE NAME, ADDRESS, TEL NO. & EMAIL ID)


Copies to:
Shri Vilasrao Deshmukh, Chief Minister, Maharashtra
Shri Sushil Kumar Shinde, Union Minister of Power
Shri Anil Razdan, Secretary, Ministry of Power
Shri A.K. Basu, Chairman CERC
===================
===================

Advertisement by-lines - the whole truth !

I've always wondered about how Ad agencies come up with by-lines for various companies and the products and services.

Maybe the ones that eventually see the light of day are only the half-truth (Ardh Satya!)

Here's my view on what would be the whole truth .. and nothing but the truth? .. I've been reading up on too many legal issues of late ;-)

So, here goes.. read this as ...

The Company/Product...
... followed by the official by-line ...
.. and then my version of the whole truth .. enjoy!


MRF
The tyres we race are the tyres you buy
… so don’t complain if they look worn out !

ICICI Prudential
We cover you at every step in life
... but once you die …

DSP ML Equity Fund
Discovering Value
…err, that is to say, we’re still looking, haven’t found it yet!

Domino’s Pizza
The Pizza delivery experts
..now only if we could be the “cooking” experts …

Naturals
The Ice-cream of Juhu
So please excuse the grains of sand!

Lakshya Advertising
Think. Aim. Achieve.
… now if only WE could that ourselves …

Manikchand’s Oxyrich
For those who never compromise
... from those who DO !

Barclays
First bank in the world to introduce ATMs
… and we still haven’t got it right !

SBI Banks
Pure banking. Nothing else.
What? …you expected more??

Ultratech Cement
The Engineer’s choice
but we actually need to be the Builder’s choice!

HDFC Standard Life Insurance
Sar Utha Ke Jiyo
Magar neeche “fine print” mat padho …

MTNL
MTNL hai to sahi hai
Boss, sahi hai ... sahi banaya …

BRU
Happiness begins with BRU
... and ends in acidity

BPL Mobile
Live wire free
We haven’t got too many strings attached either !

Compaq
Kal tumhara hai.
Aaj ki baat mat karo.

Vijay Sales
Where Mumbai shops.
Where? Don’t ask us? We don’t know!

Air Deccan
Simplyfly
Got it? Just fly – and don’t ask for more!

Singapore International School, Mumbai
Ready for the world. Ready for the Future.
Now, if only we could be ready for Mumbai…

Subhikhsha
Bachat Mera Adhikaar! Subhiksha Mera Abhimaan!
Lekin itna lambaa byline kisko rahega dhyaan ?

Colgate
No. 1 Brand recommended by Dentists
They may recommend it, but do they use it? Naah !

Raymond
The Complete Man.
If he’s already so complete, where do WE fit in??

HDFC Home Loans
With you. Right through.
All the way. Till you don’t pay up.

Dr. Batra’s Multispeciality Homeopathy
Where patients come first
.. and are taken in last, after all the VIPs!

Kohinoor Electronics Store
Your PriceLESS stores.
Your Price, Less stores. Our Price, More Stores.

India Post
Anytime. Anywhere.
That’s why your letters get lost!

Union Bank of India
Good people to bank with.
Tell us who they are, and we will also bank with them!

HDFC Bank
We understand your world.
But our own world is a maze!

Big Bazaar
Isse Sasta Aur Kahin Nahi.
Hum Price ki baat nahi kar rahe hai.. saste quality ki baat hai …

SONY MONY Electronics
Bada dil. Badi Jagah
Bada Ad. Badi Price.

Timesjobs.com
Because you are worth more.
.. to us, in expanding our database.

Bajaj Fans
Incredibly Fast
…in wearing out.

Club Mahindra Holidays
Fun. Family. Forever.
Forget. Facilities. Fast.

Bisleri
The sweet taste of purity
..is missing from our products

and, to conclude, with my pet peeve ...

Electricity Conservation Drive
I Will. Mumbai Will.
Paying their Bills, there’s nothing left to “Will”

Well ... and that's how I feel ...

Is there really a power shortage in Mumbai??

The Electricity companies (and the Government?) are desperately trying to fool the Public on three issues:

1. Shortage in Mumbai – Real??

2. Costly purchase issue – Warranted??

3. Multi-Year Tariff (MYT) Petition Data – Sufficient??

1. Shortage in Mumbai - Real ??

Is the shortage real? Or is it hype created to divert attention from other issues? Are we barking up the wrong tree... forcing us to make certain wrong knee-jerk reactions?? Decide for yourself.

Background

Power to Mumbai city and suburbs is supplied by Tata, BEST, REL and MahaVitaran. The power supplied by these 4 suppliers, is generated by Tata (1777 MW) and REL (500 MW), while. MahaVitaran buys their power from MahaGenco and other central/state units. In case of any outage (shutdown) of Tata or REL, they draw “stand-by” power from MahaVitaran/MahaGenco.

Requirement

Now the what is the requirement of Power in Mumbai? There are various numbers being thrown about – 2200 MW, 2250MW, 2300 MW, 2350 MW. Your guess is as good as mine!

It seems Bhandup/Mulund areas alone consumes 150 MW (as per DNA 16.2.2007) but that is supplied by MahaVitaran, and hence only the rest is sourced from Tata & REL.

Taking various levels of requirements, here is whether there is a shortage (or surplus!) is Mumbai.

Total Mumbai	Maha Vitaran areas	Tata/REL BEST areas	Tata/REL generation	Surplus / (Shortage)
2200	150	2050	2277	227 surplus
2250	150	2100	2277	177 surplus
2300	150	2150	2277	127 surplus
2350	150	2200	2277	77 surplus

Is Mumbai really responsible for “tripping” the State Grid?

It was mentioned in some report that since one of Tata’s units (140 MW, if I’m not mistaken) was down, this has led Tata to “overdraw” from MahaVitaran (based on the “stand-by” arrangement).

Now, even if Tata did draw power for Mumbai, how could it “destabilize” the State network?

Someone’s got their arithmetic all wrong here (and it could even be me !!) .. but if I'm NOT, then the worrying issue is .. is this INTENTIONAL ??? .. and WHO are the real beneficiaries ??

2. Costly Purchase Issue

Which brings us to the shortage all across Maharashtra. Now even that may not really be so real!

Background
The MSEB network (MahaGenco-MahaTransco-MahaVitaran) is responsible for electricity supply all over Maharashtra, except Mumbai city (excl Mulund/Bhandup areas).

MahaGenco generates electricity, MahaTransco transmits it and MahaVitaran distributes it. MahaGenco sells ONLY to MahaVitaran,but MahaVitaran buys from other generators also (NTPC, etc). to cover up the shortfall.

The generation capacity of Maharashtra is as follows:

Tata … 1,777 MW

REL …… 500 MW

MahaGenco* … 9,592 MW (* after derating)

Total … 11,869 MW

Requirement

What is Maharashtra’s requirement? .. and what is the shortage? Does anyone know for sure??

These companies like to give figures in MW (Megawatts) and sometimes in MUs (Million Units), just to confuse the public. While Plant capacities are in MW, we are supplied electricity in units (and charged Rs. Per kWh).

The correlation is this:

If a generation company has a plant of say 500 MW. It means it can generate 500 MW in one hour. Meaning it can generate 500,000 kW (1 MW = 1000 kW) in 1 hour.

Therefore in a year (365 days) it can generate:

500,000 kW x 24 hours x 365 days = 4380,000,000 units (i.e. 4380 MUs).

Now, the plant has a downtime also and it suffers on account of less Load (Plant Load factor %). So, if the same plant, as above, has a Plant Load Factor of 98.70%, the actual generation is as follows:

4380MUs x 0.987 PLF = 4323 MUs Gross Generation.

The plant itself uses electricity, auxillary consumption (8-10%). This is also factored in to arrive at Net Generation. In our example, if Aux Cons. is 7.59%, then Net Generation is now:

4323 MUs x 0.9241 (i.e. 100-7.59) = 3995 MUs

It is this 3995 MUs that goes into the Distribution Network.

There is also a Loss in the Distribution Network, called Transmission & Distribution (T&D)Loss. This loss results in less electricity actually reaching the consumers (paying consumers, that is!).

Did you know that loss across the MSEB network is close to 40% … so even if the State buys costly power from outside at Rs. 6-7 per unit, to meet the shortfall of 15000 MUs (?) only 60% of this will actually reach the consumers !!!

Till we don’t plug the leaks, we will forever, be paying much MORE than what we should. It is better for the State Government to deploy these funds to reduce the T&D loss.

If the State is so magnanimous and has so much of money, it may as well advance the amount as a Subsidy, instead of asking US to pay at these higher rates.

Its all very simple to make grandiose statements of buying expensive power, with SOMEONE ELSE’s MONEY !!

3. Multi-Year Tariff (MYT) Petition Data – Sufficient??

Do you think that your participation in the current MERC Public Hearings is going to make a difference? Do you know enough to comment/objection/make suggestions??

Background

All electricity companies have filed their Multi-Year Year (MYT) Tariff Petitions, with MERC, based on the detailed Regulations laid out the MERC Tariff Regulations, 2005.

These companies were to file these petitions on/before 30.11.2006 (120 days before the implementation date of 1.4.2007). However all of them have filed these LATE – some as late as January 2007 – and yet MERC has graciously condoned their delay.

In fact, the MYT was to be implemented from 1.4.2006, but on a request from these companies, MERC moved the date one year ahead (to 1.4.2007) and still these companies were late in filing.

Public Hearings

MERC dutifully called for Public Hearings under section 64(3) of the Electricity Act, 2003, since tariff cannot be fixed without first taking the Public’s views.

Now there are no Regulations laid out for these Public Hearings and hence there is no stipulation on the amount of time to be given to the Public.

As a result, this month we have a spate of hearings, back to back. BEST, MahaGenco and MahaTransco are done and next up are MahaVitaran (March 16th), followed by Tata Power (March 20th) and Reliance Energy (March 21st). Please do attend these.

Voluminous Data

This late filing and hurried manner of presenting Petitions and conducting Public Hearings, has resulted in voluminous Petitions being made in record time.

We have to study over 3165 pages...

> MahaGenco 670 pages

> MahaTransco 415 pages

> MahaVitaran 430 pages

> BEST 600 pages

> Tata Power 650 pages

> Reliance Energy 400 pages

There’s also a CD with each set.

I think I must be one of the few people in Mumbai who has bought ALL of these. Yes, you have to BUY these. It cost me Rs. 950 (all are Rs. 150 each, except REL which is Rs. 200).

Now we, the Public, are expected to read these, understand these, analyse these, check for errors, make suggestions, send responses to these companies, make 5 copies of our responses and send them to MERC … all within 15-20 days!!!

Incorrect and Insufficient Data
There are ridiculous data gaps and inconsistencies. Here is one example:

BEST and REL both, buy power from Tata. See the following data items that appear on "Power Purchase for 2007-08".

As per BEST’s Petition (page 12, Table 3) it is 4,376 MU

As per Tata’s Petition (page E-20, Table 1-19) it is 5,003 MU

As per REL’s Petition (page 5, Table 3 & 4) it is 3,981 MU

As per Tata’s Petition (page E-20, Table 1-19) it is 3,127 MU

How are we supposed to comment (or object) to such inconsistencies? I guess the electricity companies never thought that someone would cross check the figures with the other companies' submissions!!

I had raised this point at the BEST Public Hearing on 27.2.2007, that it was a waste of public money, time and effort to decide on BEST’s petition without first deciding/hearing Tata’s petition first.

It makes sense to decide on the Generator's first and then the Distributor's ... but no one is listening!

Along with 35 other individuals and organisations, I had asked MERC to postpone these public hearings – and we are still hoping they will accede to the Public's request.

And as far as the electricity companies are concerned, there is a famous quotation about … not being able to fool ALL the people ALL the time …right ?


Well ... and that's how I feel ...

" A learning experience for both of us !! "

I participated in the Appellate Tribunal for Electricity (ATE) hearing on Feb 20-21 in New Delhi. It was a fantastic learning experience for me.

The entire atmosphere was charged with an air of supreme importance. I was a part of a team of 5, that represented the +25 lakh consumers of Reliance Energy Limited’s (REL) Mumbai consumers. What an honour !!

The Background
Some of you are aware that this was with regard to the appeal made by REL against the October 2006 Tariff Order passed by the Maharashtra Electricity Regulatory Commission (MERC).

As part of the annual truing up and tariff fixing exercise, MERC had disallowed certain expenses incurred by REL, which is what REL appealed for. This totaled well over Rs. 1,000 cr.

- Rs. 411 cr (towards expenses and income-tax)
- Rs. 226 cr (of allocated reserves)
- Rs. 350 cr (towards the old rebates/discounts of BSES)
- And some uncalculated amounts towards reduction in distribution losses and other generation parameters

It is important to know that REL’s October tariff was based on an approved total requirement of Rs. 2,902 cr – so if they DO get this additional Rs. 1,000 cr, it will mean that the existing tariff can go up by another 35% !!

The Players
REL had their hot-shot team of half-a-dozen legal experts, besides their own team from Mumbai. MERC was represented by 2 legal experts, Prayas (a leading Energy NGO from Pune) also appeared and the Bombay Small Scale Industries Association (BSSIA) lead the team of consumers.

The hearing was spread over two days, with REL taking up a greater part of the 1st day, followed by Prayas, while the BSSIA and MERC did the honours on the 2nd day.

The Discussions
REL gave elaborate reasons for wanting to claim the disallowed amounts. They claimed that the additional Employee costs were on account of implementing MERC’s Statutory Regulations (!) and consumer-friendly services like Call Centre and various language bills.

REL also felt that MERC had unfairly disallowed proportionate income tax, just because REL was doing other business (well, it admitted they were doing other business!). The experts from REL’s legal company, did an admirable job of presenting their case over a (painstaking 4 hours .. phew ..) I must mention the role of the leading lady – who managed to hold her own, in the midst of the utter confusion of the numbers!

Temporary Relief
On an earlier date, Prayas mentioned that the Rs. 350 cr issue was pending in the Supreme Court (Tata Power has challenged ATE’s order), and the Tribunal asked BSSIA whether it wanted REL to withdraw their appeal or continue to argue the matter. BSSIA said in any case tariff was to be fixed by MERC and not ATE, and therefore the public would have to be called in for a hearing before implementation.

However, when pushed further, BSSIA said that it was prudent to let REL withdraw the appeal for Rs. 350 cr and provide some temporary relief to Mumbai consumers. In any case, if the Supreme Court ruled in favour of REL, no one would have any choice.

Hence, REL filed an amendment the next day and withdrew the demand for 350 cr. Consumers will have temporary relief that the 97 paise per unit will now not be charged. For those who are aware, there's a line which keeps appearing in our bills "AEC not included in this bill" - well, it WON'T - unless and until the Supreme Court decides !

My presentation
I had the privilege of making the presentation on behalf of the BSSIA. We are given to understand that REL does not have the License in their own name and in fact they had made the present appeal also, only as a corporate entity.

This created quite a commotion and the Tribunal asked us as to how does the consumer benefit, if at all, from this fact. We then pointed out that if REL was to truly comply with the strict License conditions (and if MERC would have ensured compliance), the tariff structure would be a lot more different (read: lower).

MERC’s own Tariff regulations actually specify that a part of the profits of the “other business” would be reduced from the total amount of money to be collected from electricity consumers. With due respect, I was actually surprised at even being asked that question !!

We also pointed out that MERC did not ensure that it complied with Tariff procedure. MERC is supposed to call a public hearing before fixing tariff. However, as regards the Rs. 350 cr issue. MERC did not discuss this in the public hearing of June 2006, but went ahead and directly inserted this in the final October 2006 order. We stated that we would like MERC’s functioning to be a lot more transparent and consumer-friendly.

We also contended that if REL was unhappy with a part of the Order, they need not have implemented it at all and gone straight into appeal. Just like how BEST did when they were unhappy with MERC’s March 2006 Order, which was only implemented in October 2006.

The most important point we made is that Tariff fixing is the sole responsibility of the MERC and NO ONE else can do that – neither the ATE nor the Supreme Court. So even if anyone of these authorities awarded (or adjudicated) any amounts in favour of any supplier, MERC would HAVE to call the public for a discussion before fixing the tariff.

There were many other issues that we took up and I really appreciate the patience of the Tribunal bench in dealing with novices like me ! They are used to dealing only with Government, Corporates and members of the Legal fraternity – but our team really pushed them to their limits! Hat’s off to them ...

The Result ??
I don’t know what will come out in the final order, but we tried our best, for what its worth we’ll keep trying to do more of what we think is right – and I think justice WILL be done … eventually !

Well, I think it can be aptly summed up in the words of one of the Hon’ble bench member, who said, “This has been a learning experience … for both of us” Touché!

I’ve narrated this in good faith, for the public good, so that the people understand how things work. This is without prejudice. I trust no one will take offence.

Well … and that’s how I feel …

This is how much more BEST will charge from 1st April.

BEST, Mumbai has filed its Multi-Year Tariff (MYT) petition, with MERC, which will come up for a Public Hearing on Feb 27th.

These new rates, if approved, will be applicable from 1st April, UNLESS .. you oppose it .. the choice is yours ..

Taking sample cases, here is a quick look of what may happen (the amounts incl. taxes and duty):

Residential Users (with Single phase supply)
100 units .. present .. Rs. 110 .. proposed .. Rs. 211 (91% up)
300 units .. present .. Rs. 707 .. proposed .. Rs. 1,226 (73% up)
400 units .. present .. Rs. 1,406 .. proposed .. Rs. 2,550 (81% up)

Residential Users (with Three-phase supply)
100 units .. present .. Rs. 206 .. proposed .. Rs. 285 (39% up)
300 units .. present .. Rs. 802 .. proposed .. Rs. 1,279 (59% up)
400 units .. present .. Rs. 1,459 .. proposed .. Rs. 2,603 (78% up)

Commercial users (LTC-1/LF-2)
300 units .. present .. Rs. 1,332 .. proposed .. Rs. 2,149 (61% up)
1000 units .. present .. Rs. 5,660 .. proposed .. Rs. 7,303 (29% up)
2000 units .. present .. Rs. 13,070 .. proposed .. Rs. 15,879 (21% up)

(This does not include variable charges for Commercial users above 3000 units per month).

I haven't presented the calculations for Industrial users, but that data is also available in 340-page document.

One of the main reasons for this is that BEST proposes to spend approx Rs. 800 crores in capital assets, over the next three years. Funny, since their average spending over the past 5 years is only in the range of 60-70 crores !!

Well .. as I said, the choice is yours .. keep quiet and pay up .. or stand up and oppose it.

The hearing is scheduled for Feb 27th and the last date for filing comments / objections with MERC is Feb 25th. Anyone else interested in filing a statement?

In case you are interested in what's happening on the electricity issue, please join the bijlee yahoo group at http://groups.yahoo.com/group/bijlee/ and keep yourself updated on the electricity issue - so you don't get rude SHOCKS !!

BTW. The numbers are driving me nuts .. in case I have made a calculation mistake, please bring it to my notice ! Thanks, in advance.

Well ... and that's how I feel ...

Private Firms covered under RTI - Great !!

Here's some good news .. private companies who report to any "Regulatory Authority" are also covered under the Right to Information (RTI) Act.

Which means that any company, whether public orprivate, if it is "reporting" to any Government or Regulatory authority, it is liable to give out information under RTI.

With this, the RTI list also includes:
- Private Banks (via RBI)
- Stock Exchange Listed companies (via SEBI)
- Telecom companies (via TRAI)
- Electricity companies (via CERC/MERC/State Commissions)
- Insurance companies (via IRDA)

Some more Regulatory Authorities are in the pipeline:
- Pre-examination Coaching Centres Regulatory Authority of India
- Airport Economic Regulatory Authority

There should be more transparency, now that Consumers can now hold all such companies "answerable" and "accountable."

This news item appeared in MINT, the business newspaper from Hindustan Times. MINT is a great new, refreshing way to read business news...

Here's the link:
http://www.livemint.com/2007/02/06134316/Right-to-information---Private.htx

I must mention that one needs to register at the site to read the article (however, it's free - and takes less than a minute).

But for those who haven't registered (or won't !), I have reproduced a few excerpts from the article below....

------------------------------
Companies, banks under purview of the govt have to honour RTI requests, clarifies information commission - K. P. Narayana Kumar

M.M. Ansari, information commissioner at the Central Information Commission that oversees the implementation of the Right to Information (RTI) Act, 2005, told Mint that as long as these companies reported to a regulator or a government department, they were within the purview of the sunshine law.

According to the commission, companies will not have to appoint an information officer to deal with right-to-information demands the way government entities do. Applicants will route their requests through the relevant agency.

“Applicants have every right to seek information on a private company even though it is in the private sector, if it reports to a government body,” Ansari says, citing sections of the Act that made this possible.

Only applications that served public interest would be dealt with, not those that sought to erode a company’s competitive position, he adds.

The message: you can ask a cola company for details on how much water it used and where the water came from, but not the formula of its fizzy drink.

If there is any difference of opinion on what constitutes public interest and what doesn’t, the commission will intercede and decide.
---------------------------

Well, and that's how I feel ...

"YOU are the Government"

"YOU are the Government" ... What an empowering statement … think about it ....

So stop complaining ... GET UP ... and RUN your country ... Run your State ... RUN your City !!

Say it aloud to yourself .. “I AM THE GOVERNMENT” … the rest of the people who sit in the Govt Offices ... and the Parliament ... are just our Representatives … “Govt Reps”. (I prefer to use the phrase “Govt Reps” ... as opposed to “Govt Servant” ... which I believe is very derogatory).

I was recently in New Delhi (for the REL hearing, as you know) and I met an enlightened soul who, in the middle of an intense discussion turned around and said ... but “YOU are the Government … if there are people in the Govt Offices who are not protecting your interests and rights ... change them … !!”

A simple, powerful, positive thought ... from a simply great soul ! Thank you, PSS ... and God bless you, for reminding me …

Thursday, February 1 is Voting day in Mumbai.

If YOU don’t take responsibility for electing YOUR own Rep ... those who DO go and VOTE ... will get the Rep of THEIR choice … and YOU can sit back and keep complaining … for the next five years …

And the next time a candidate comes to your house asking for your vote - if seeking re-election, first ask him/her what he/she has done during their tenure and how much of YOUR money have they spent ... and WHERE …

If seeking to be elected for the first time, ask for their agenda … and firm plan of action … for improving YOUR area … and note down all their contact numbers and addresses… to keep a check on them later …

Choose you OWN Rep ... keep them accountable … get them to make their functioning transparent ... be vigilant about their transgressions … at the same time, empower them to protect your interests … sure you can’t do that alone ... but then 10-20-50 people getting together can make all the difference !

See the Local Area Citizen’s Group Charter by Karmayog on http://www.karmayog.com/lacg/lacgindex.htm

See what’s being done by the Juhu Citizens Group at http://www.juhucitizen.org/aboutus.htm ... and by Loksatta, on http://www.votemumbai.org/aboutus.asp

PLEASE GO VOTE ... and take responsibility of running your own city ... or else STOP complaining about what's happening around you.

... if YOU abdicate YOUR responsibility ... you have NO right to complain ...!!

Well ... and that's how I feel ...

REL Penalised at ATE hearing !!!

This is with reference to the REL appeal at the Appellate Tribunal of Electricity, New Delhi, to put an additional burden on us of over a 1000 crores...

Well, I attended that hearing.

Here are brief details of what happened ...

As per the Notice issued to us, 3 of us from the Bombay Small Scale Industries Association (BSSIA) and 2 independent consumers turned up on Jan 18th, to protest against REL's proposed hike.

At the hearing, NO other consumer organisation from Mumbai (or anywhere else) turned up.

Though we (and one representative from MERC) were present, the REL counsel, took an adjournment, without our consent, and left !!

However, when we brought this matter to the attention of the Hon'ble Bench, they were gracious and just, to list the matter on Board again the next day and issued orders to all concerned to be present.

On 19th, again, NO other consumer organisation from Mumbai turned up !!

Shameful !!

But, Prayas Energy, (a Pune NGO) showed up and made a representation against the hike (see DNA press report here http://www.dnaindia.com/report.asp?NewsID=1075497 ).

The BSSIA is of the opinion that since REL does not have a License, they have no right to make the appeal, at all.

The REL counsel was asked why no consent was sought from the BSSIA, especially since they themselves had sent a Notice to BSSIA and about 8 other persons to be present on Jan 18th.

REL had no reply to offer and again requested that the matter be adjourned with a short date of Feb 5th, which they had taken earlier.

We all were ready to have discussions (known as "arguing the matter") and so were the MERC counsel and the Prayas representative, but REL did not want to ... and kept insisting on an adjournment, just because some senior counsel of theirs was not available.

What a reason ! Especially when all the others were present to argue the matter. Such gross misuse of the system leads to a waste of time (of the people and the Courts) and public money - which eventually YOU and I will pay for - as part of our electricity bills !!

The Hon'ble Court then penalised REL for calling everyone to Delhi and then asking for another date - consequently, making everyone come again. Though the press report says that BSSIA asked for reimbursement, thats not true.

The Hon'ble Court then awarded all those present (Prayas, BSSIA and other individuals, but not MERC) an amount of Rs. 1 Lakh, as damages.

The Hon'ble Court was very eager to hear the consumers (Thank God .. & the Hon'ble Court !!) and asked for our confirmation for the next date. We requested for a date after Feb 17th and a date of Feb 20th, was agreed upon, by all present.

So, till Feb 20th - this matter is staved off - so we all can breathe a little easy, as the "AEC charges" may not be levied in our next set of bills also.

While we will continue to fight such irresponsible hikes, the important questions are:
- Where did the nominated Mumbai consumer organisation (Mumbai Grahak Panchayat) go ?
- Why didn't they attend ? Especially after being quoted in the Press as having a commitment to protest (see Hindustan Times, dated 14-1-2007)
- They could have submitted a written protest - but didn't - WHY ?
- Why is there no accountability ?
- How does MERC even authorise such entities ?
- What should consumers do when their (supposedly) own representatives do not perform ?

The last question is very important in the perspective that BMC elections are around the corner. (More on this later).

This experience just shows the machinations of large corporations and how they wield their power to manipulate the system.

Sign the online petition for removing this unholy exclusivity and let's pave the way for competition - so that we don't have to deal with this again...Ever ! Do that here: www.petitiononline.com/oct2006/petition.html

Well ... and that's how I feel ...

This information has been posted in good faith, in the interest of
public good, without prejudice.

Does REL have something to hide ??

By now, you all know that Reliance Energy does quite a few businesses:
~ Electricity Generation, Transmission & Distribution
~ Electricity Trading
~ Mumbai Metro Rail
~ Reliance Bluemagic D-T-H
~ Highway Construction

You also know how they are not allowed to do any non-electricity business without permission.

You also know that REL does not have the License for Mumbai area.

And you also know how they are flouting all these rules, just because we consumers do not have any alternative.

Anyway, strangely, Metro Rail, DTH and Highway Construction do not find any mention on REL's website (www.rel.co.in) either in the "About us" or in the "Company Profile" or in the "Group companies" .. or anywhere else ...

Does REL want to HIDE these facts ????

Another thing ... while the Mumbai electricity business is being done under the name of "Reliance Energy", the New Delhi electricity business is in the name of "BSES" ...!!!!!!

The REL website of the Delhi business is named www.bsesdelhi.com !!

And the two subsidiaries are called "BSES Rajdhani Power Limited' and "BSES Yamuna Power Limited."

Ha ! .. A Mumbai company changes its name in Mumbai ... but retains the "Bombay" part when doing business in New Delhi !

Oh, and there's more .. REL has gone the extra mile and has displayed prominently the electricity License of these two companies, here ..

http://www.bsesdelhi.com/ENG/PublicAwareness/License.asp

Open the pdf file of the License, check Point No. 5.2 (d) which says that a License cannot be sold transfered, assigned, etc ... without permission. (This is standard for all electricity Licenses).

Well, REL .. now how about displaying the Mumbai Suburban License as well .. or do you have something to hide ?????

We consumers do not have time for such shenanigans – let's sign in and end this monopoly, so we don’t have to play policeman all the time.

Please sign the online petition at
http://petitiononline.com/oct2006/petition.html
and lets remove this monopoly once and for all.

Well ... and that's how I feel ...

REL wants you to pay another Rs. 1660 crores !!

Yes, you read that right…!!

If you thought that REL was going to rollback any of the hike levied in October ... think again ..

REL has gone and appealed against MERC, to the Appellate Tribunal of Electricity (ATE) in New Delhi. The hearing is slated for Jan 18th.

Here are the details:

A) In addition to the charges that REL wants us to pay currently, REL has appealed to ATE to “approve” the following additional expenses:

697 cr for Employee Costs
309 cr for Administration & General Exps
175 cr for Income Tax
127 cr for Repairs & Maintenance

Total Rs. 1308 cr

B) If you recall BSES had also given rebates and discounts to a few industrial and commercial users like L&T, TOI, M&M, etc .. well REL wants that Rs. 350 cr back as well.

C) MERC had asked REL to cut down its Transmission & Distribution losses by 0.5% .. from 12.1% to 11.6% .. REL refuses to agree to this also, so you can safely add a few more crores.

So we’re looking down the barrel of the gun…. for at least Rs. 1658 cr (1308+350).

Divide this by the number of consumers (25 lakh) and we get an additional bill of approx Rs. 6,600 per year, in ADDITION to the ridiculously high Oct-Nov-Dec type bills.

MERC had disallowed these amounts and had recorded various reasons for doing this. For instance, MERC did not allow the full income tax amount claimed by REL, as REL is doing other business and they were not able to figure out how much profit was to be ascribed to these other businesses and hence the total Income Tax was not allowed.

Now here are my issues (you knew I had them, didn’t you ?) …

1. The Electricity Act, 2003 states that an appeal can be made within 45 days only, unless there are valid reasons. REL has filed its appeal against the 1-7-2004 Order, on 30-10-2006, nearly two years later ! Why did ATE even admit the matter ?

2. The Electricity Tariff Policy 2006 released by the Government of India on 6-1-2006 states that past losses are not allowed to be carried through, unless they are on account of “uncontrollable factors.” Also, it states that suppliers can charge less than approved rates, as long as they do not claim those discounts/rebates again in their Revenue statements. By this logic, REL cannot charge back this 350 cr – as it was a voluntary discount given by them. There were no “uncontrollable factors” and neither was there any compulsion to offer these discounts.

3. In any case, if 350 cr of “wrong” discounts were given – they should go back to those persons/companies and claim that back only from them – why penalize EVERYONE ?

4. With so much of capital investment planned and done, REL cannot even accept a small reduction in transmission & distribution loss ?? Then why undertake so much of modernization and upgradation ??

REL is flouting all rules and yet is attempting to claim all benefits under the Electricity Act - and it still doesn't have a Licence in its own name - as admitted by MERC again on 19-12-2006 !!

Now, if REL wins this case, you can just about forget trying to “reverse” any of the existing hikes, they will be back with a vengeance to claim higher bills from you and me and the rest of us ...

On behalf of 25 lakh consumers, we are fighting a lone battle against this Goliath .... and are running short of resources ... severely short ...

Can anyone help ??

Well ... and that's how I feel ...

BEST's Electricity Rate hike postponed !!

It was a victory, of sorts, of heightened consumer awareness and consumer participation.

At the Public Hearing held by the MERC on 29-12-2006, the BEST's Aggregate Revenue Requirement (ARR) and Tariff hike for the island-city area, presented by their GM, was withdrawn and POSTPONED to Feb 2007 !

In fact this proposal was not even approved by BEST's own Committee, before presentation to MERC/public for discussion.

In addition Rakshpal Abrol, President, Bombay Small Scale Industries Association (BSSIA), also pointed out that as per section 62 (4) of The Electricity Act, 2003 that governs determination of Tariff, "No Tariff or part of any tariff may ordinarily be amended, more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified."

And since MERC had already passed a BEST Tariff Order on 9-3-2006, which had been implemented from 1-10-2006, therefore MERC is now not empowered to change the Tariff, within one financial year.

MERC agreed and postponed the ARR & Tariff proposal for 2006-07 and the matter will now only be heard in Feb 2007 where the Tariff will be finalised for a three-year period under the new Multi-Year Tariff principle.

During the hearing 3 of the 4 nominated consumer-oriented organisations were absent and the only other designated Objectors who spoke were Rakshpal Abrol, Kirit Somaiya, Sandeep N. Ohri and Navin M. Shetty.

Incidentally, BEST was incorrectly proposing the Tariff under sections of a repealed Act, which was also pointed out by the BSSIA.

As a result, over 10 lakh consumers in the BEST supply area will now have NO tariff hike.

This is the kind of result that alert consumerism can bring about.

Here's wishing you a safe, peaceful and more AWARE 2007 !!

Well ... and that's how I feel ...

The REL saga continues ...

This is like a bottomless pit !!
It just keeps getting deeper and deeper ... read on ...

1. Reliance's DTH business, BlueMagic, is a subsidiary of REL
By now you all know that the Electricity company needs permission to do other businesses – I wonder if MERC has granted them permission for this.

Here are the weblinks:

http://www.efytimes.com/efytimes/fullnews.asp?edid=5020&magid=

http://www.indiantelevision.com/headlines/y2k6/sep/sep101.htm

2. REL is also into construction of Highways in Tamil Nadu
Again, permission taken from MERC ?

Here is the weblink:

http://economictimes.indiatimes.com/News/CompaniesA-Z/R_Companies_/Reliance_Energy/Reliance_Energy_hits_the_highway_with_2_TN_projects/articleshow/1899084.cms

3. REL has TWO Certificates of Incorporation !

When the name was changed from “Bombay Suburban Electric Supply Limited” to “BSES Limited” on Dec 23, 1992, no separate Certificate of Incorporation was sought from the Registrar of Companies.

But when name was changed from “BSES Limited” to “Reliance Energy Limited” on Feb 24, 2004, a fresh Certificate of Incorporation was sought for - and granted/received.

Why does REL need TWO concurrent Certificates of Incorporation ? Is it allowed by law ?

This information about having two certificates, appears in the Notice of the Court Convened AGM of April 26, 2006 for the Scheme of Amalgamation of REL and Reliance Energy Ventures Ltd.

The pdf file is available here:

http://www.rel.co.in/investorrelations/pdf/CCM_260406_Notice.pdf

So, probably, when it suits them, they say they are incorporated in 1929, and at other times they can say they were incorporated in 2004 - something seems to be really fishy here !

4. Interest Cost on Borrowings is 10% or 0% ?

In the Revenue statement (ARR) submitted by REL, MERC has approved an interest rate of 10% as cost of funds, for funding capital expenditure.

Interestingly, in Nov 2006, REL has completed a ZERO-rate FCCB (Foreign Currency Convertible Bonds) arrangement of US$ 150 million (Rs 750 cr). An FCCB is a Bond (something like a term borrowing) which can be converted into equity after a specified period. ABN AMRO arranged for this and it was placed with 8 US-based financial institutions.

So tell me ... should the interest rate be taken as 10% or 0% ?? If cost of funds is zero, then the ARR submitted to MERC should be revised and the interest should be written back.

In which case, the revenue gap will be lower and REL should charge lower rates for electricity. On one hand, REL is claiming a higher 10% cost of funds and getting electricity rates approved - and on the other, the actual borrowing is at lower rates. Now, I could be wrong here - but then again, think for yourself ...

REL's announcement of this appears on the BSE website here:

http://www.bseindia.com/qresann/news.asp?newsid={0F35078E-6954-494C-BA81-C48C2373AA70}

MERC is still not confirming that REL has a Licence !
We have asked MERC (on Nov 30, 2006) to confirm whether REL had a Licence in their own name - either a fresh one - or the old "Bombay Suburban.." one duly assigned ..

In their reply dated Dec 19, 2006, MERC is silent on both counts .... WHY ?? If REL indeed HAS a Licence, why is MERC not saying so clearly - and putting all speculation to rest ??

REL Group's Double Standards
Interestingly, this same Reliance group is opposing exclusivity in City Gas distribution, yet it is enjoying the benefits of exclusivity in the City Electricity business !!

See that news item here:

http://www.dnaindia.com/report.asp?NewsID=1070380

What to do ??
Well, I think this has gone too far .. and its high time we, consumers, became aware of such transgressions.

My suggestions still remain the same .. let's NOT pay the Bills, which I hope will make all concerned, sit up and rectify these issues.

In any case, since REL does not have the Licence for Mumbai in their own name, they are not empowered by law to disconnect the electricity supply.

I know of one consumer who has NOT paid the REL electricity bill on these very grounds ... for 2 1/2 years .. and REL has not disconnected the supply!!

However, in the long run, its best if this monopoly goes once and for all ..

Please endorse the online petition to remove exclusivity at:

http://petitiononline.com/oct2006/petition.html

In which case, even REL will get an opportunity to do more business in Mumbai - they can sell into Tata, BEST and MSEDCL areas (and vice versa) .. so this is all in the spirit of fair enterprise!

Does anyone have any other ideas on what we should do about this ?? Sign up at NEMESIS-Forum and lets keep this discussion going, till we arrive at something sensible. Send an email to NEMESIS-FORUM-subscribe@yahoogroups.com

Don't become a victim of this injustice !


Well ... and that's how I feel ...

Words of Wisdom - 2

It has often been said that the way we feel is reflected in the words we use .. and vice versa.

By the same logic, can we actually change the way we feel, merely by changing the words we use ? Did I hear someone say, "impossible" ?? ...or is it just "difficult" ?? .. or "worth-a-shot" ??

Anthony Robbins in "Awaken The Giant Within" has this theory of breaking one's pattern of negative thinking by using different words constantly. By using a less strong word for a negative emotion/expression, we can actually lessen the degree of negativity.

For instance change "I’m feeling ANGRY" .. to "I'm feeling DISENCHANTED" .. and the negativity is instantly lowered.

Here, go ahead and try some more of these word substitutions ….

Negative Emotion
/Expression..............Transforms into

angry.............to......disenchanted
afraid............to.......uncomfortable
anxious........to........a little concerned
anxious........to.......expectant
confused......to........curious
depressed... to...... not on top of it
depressed......to......on the road to a turn-around
destroyed.......to.......set back
that stinks......to.......that’s a little aromatic
pissed off........to .......ticked off
disappointed..... to......underwhelmed
disgusted..........to........surprised
dread..............to..........challenge
exhausted.......to........ stimulated
failure...........to...........stumble
failure..........to..........learning
failure..........to..........getting educated
frustrated......to.......fascinated
humiliated.......to.......uncomfortable
humiliated.......to........surprised
hurt ...........to........bothered
I hate...........to ........I prefer
impatient........to........anticipating
insecure..........to .......questioning
insulted.......to.......misunderstood
irritated........to........ruffled
jealous.........to .......over-loving
lonely..........to........available
lost............to .........searching
nervous.......to........energised
overloaded........to.......stretching
overwhelmed.......to........ some imbalance
overwhelmed .......to.......challenged
painful.................to...........uncomfortable
petrified...........to.......challenged
rejected ........ to .......overlooked
rejected ..........to........ underappreciated
sad ................ to.......... sorting my thoughts
scared ..........to.............excited
oh, shit ......... to....... oh, no
sick................to.........cleansing
stressed........to........busy
stressed.........to.......energised
stupid.......... to.........unresourceful
terrible........to........ different

As an exercise, you must come up with three of the (negative and disempowering) words that you use in your daily vocabulary - and replace them with lower degree negative words .. or different positive and empowering words.

----------------------------------------

Try this for a few days and see .. it WILL make a difference - not only to how you feel but also to how you make others feel !

Incidentally, all copyrights belong to Mr. Anthony Robbins .. and he deserves it !

Well … and that's how I feel …

Please let me know which words did you switch … and we could compile our own list right here at blogspot .. ok, so who's first ?

The "AEC" part ...

You & I are going to pay for the discounts given to TOI, L&T, M&M ...

Shocked ?? .. you would be ... Angry ?? .. you should be !!

You must have all heard of the “Additional Energy Charge” (AEC) of Rs. 350 crore that REL wants to charge its consumers, over a period of 6 months, (Oct 06 - Mar 07).

These were for the “incorrect discounts/rebates” that were given by BSES, to “certain categories” of consumers.

Initially, MERC had allowed this, as per their Oct 2006 Tariff Order - but the public outcry forced MERC to ask REL to defer implementation of this AEC and to spread it over 18 months.

Go ahead, check your bill, it says “AEC not included in this bill.”

Incidentally, REL has gone to the Appellate Tribunal to appeal AGAINST MERC, so that it can “recover” this sooner !

Now here’s the fun part (there always is, isn’t there ?) …

It seems these discounts/rebates, were not given to ALL consumers - they were given only to a few consumers – I’ll bet everyone is dying to know WHO were the beneficiaries of BSES’s largesse, well here’s the truth….

1) It seems that from 1992 to Feb 1998, BSES had been selling electricity to the “Western Grid” (areas out of Mumbai) for a lesser rate than their cost of production (at Dahanu). WHY ?? No one knows – in fact, as per terms of Licence to supply, I don’t think they were even supposed to supply electricity outside the Mumbai area.

2) Also, from Feb 1998 to Jun 2004, it seems discounts have been given to many industrial users like Times of India, Larsen & Toubro, Mahindra & Mahindra, ICICI Bank, etc. – just to compete with Tata Power and to gain that additional business.

Consequently, BSES ran up a loss of Rs. 350 crores – which REL wants to recover from you and me and the rest of Mumbai’s unsuspecting, gullible, citizens !!

Sounds pretty unfair, doesn’t it ?? Give discounts to industrial houses - and then recover that from individual users …Ha ! ... "Robbing Paul to pay Peter" ... !!!

If you don't wake up ... very soon you (and I) WILL be paying REL for those discounts ...

Let’s put an END to this injustice …sign the online petition for Removal of Exclusivity in the Supply of Electricity to Mumbai.

Visit http://www.petitiononline.com/oct2006/petition.html ...

No exclusivity …No injustice … na rahega baans, na bajegi baansuri !!

Well … and that’s how I feel …