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OHRI MERC RINFRA 09 July 2011

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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.

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OHRI MERC RINFRA 09 July 2011

  1. 1. MERC’s Public Hearing in the matter of R-Infra-D’s application for Distribution License Case 65 of 2011J Sandeep N. OhriU Authorised Consumer RepresentativeL sandeep.ohri@ymail.com2 9833097575011
  2. 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 madeJUL – All such applications must be presented before the Public2 • Hence, we are here today!!01 21
  3. 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 existingJ playersUL – Which will limit competition20 Is this market closed for all new entrants?1 31
  4. 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, actuallyJ occurred?UL – Has evidence been presented and is it sufficient?20 But, shouldn’t we care about Track Record?1 41
  5. 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 TataJU – Even ASCI pointed out that incredibly high costs were onL account of absence of an LT PPA20 Its irresponsibility is being paid for by Consumers!1 51
  6. 6. Top 5 Projects – all delayed • Most by a year, some by 3 years!!JUL20 This seems to be the ‘standard’ for this Group1 61
  7. 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!JUL20 Are electricity consumers paying for the METRO?1 71
  8. 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 2010J – That Order stated that RINFRA’s present License expiresUL – Isn’t this a ‘similar’ issue?20 What is the penalty for lying in an Affidavit?1 81
  9. 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 variousJU other Petitions (Case 40 of 2009, etc.)L20 I trust we’re not expected to become Auditors!!1 91
  10. 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.)JUL Incidentally, the data given on pg 338 is inconsistent with the data on pg 1920 Increased Capital Base WILL result in higher tariff1 101
  11. 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. OhriJ Email: sandeep.ohri@ymail.comUL Mobile: 98 33 09 75752 Moderator: http://groups.yahoo.com/group/bijlee011

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