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 …

Inter(net)working Rocks !!

Well, that's the power of the Internet for you ... less than 10 days and 400 "signatures" for the online petition to remove exclusivity in the supply of electricity to Mumbai !!

For those who still want to sign in, here's the URL: http://www.petitiononline.com/oct2006/petition.html

Read the comments, people really seem to be disgusted with REL and the injustice.

As Osho says, if there is no AWARENESS, its like you are "sleep-walking" through life !

The awareness process has begun .. a small step has been taken .. more action will eventually follow ... "karam kar, fal ke na soch"...

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