Mumbai - Rinfra demands increase in wheeling charge and cross subsidy surcharge

RInfra has filed a petition for truing up tariff for year 2010-11 (up to March 2011).  RInfra has asked for 31% increase in wheeling charges (charges for using its network by other supplier to connect the switch-over consumers) from 88 paisa to 115 paisa. The company has also demanded a cross-subsidy surcharge varying from Rs 2 to Rs 8 (depending on category) for consumers who shift to Tata.Reliance Infrastructure (RInfra) doesn't want to burden its consumers further, but wants the regulator to approve more charges for those who switch over to other suppliers. The petition was discussed for technical validation at the office of the Maharashtra Electricity Regulatory Commission's (MERC) office on 16-11-2010.

As per MERC directive, the new multi-year tariff will come into force from April 2011. It means there will be no tariff revision every year.

More than 60,000 suburban consumers have shifted to Tata Power in the past year.

Consumer activist Sandeep Ohri, who debated RInfra proposal on, told the Hindustan Times that RInfra's demand would kill any kind of competition. "RInfra has done nothing to procure additional power to bring its own tariff down."

Ohri said there were many discrepancies in the petition. "MERC has asked RInfra to file a fresh petition within 10-12 days."

R-Power's AP project gets gas allocation

Central Electricity Authority (CEA), the country’s apex power sector planning body, has given its nod for allocation of gas to Reliance Power’s 2,400 megawatt (mw) Samalkot project in Andhra Pradesh, allowing the power ministry to include it in the priority list of power projects that would need gas on an urgent basis. 

In a letter to the power ministry, senior officials in the CEA have said that Samalkot could be commissioned by March 2012 (within 11th Plan) as Reliance Power has already placed orders for all six gas turbines for the project with General Electric , who, in turn, have informed that all turbines will be synchronised by February 2012. 

In addition, environment issues for the project have, by and large, been settled and the power evacuation plan is ready. 

“The power ministry may decide for allocation of 9.6 mmscmd of gas in light of the facts/progress submitted by the company,” the letter said. The empowered group of ministers, in its meeting in July, did not allocate gas to any new power plant and decided to ask fertiliser and power ministries to prepare a new list of projects that would require gas on an urgent basis. 

“The prioritisation is being done due to scaled-down projection of gas flows from the KG basin,” an oil ministry official said.

R-Power places Rs. 3400 crore order with GE

rore order with General Electric, expects its association with American firms will generate manufacturing exports worth over $2 billion from the United States into India, the company's chairman Anil Ambani said at a function during the visit of US President Barack Obama. Reliance's order for equipment from GE will help it build its Rs 10,000 crore power project in Andhra Pradesh. The contract entails supply of six gas turbines, three steam turbines, training and long-term services for the project.

In addition to supplying equipment, GE also has signed a 15-year Contractual Service Agreement for the Samalkot project, Reliance Power said in a statement.

Reliance Power's 2,400 megawatts (mw) gas-based power project at Samalkot in Andhra Pradesh is expected to be commissioned by 2012. "Reliance Power's partnership with GE and other US companies to result in over $2 billion of manufacturing exports from US to India over next 24 months," the statement quoted Mr Ambani as saying.

Reliance Power plans to scale up its capacity to 25,000 mw by 2015. Currenlty, the company has an operational capacity of 600 mw at its 1,200 mw Rosa Power Project in Uttar Pradesh and has also acquired operational capacity totalling 433 mw from group company Reliance Infrastructure .

"The `10,000 crore ($2.5 billion) Samalkot Project will represent the largest gas turbine combined cycle power project in India's history and will help India meet its continuing demand for reliable electricity to support its rapidly growing economy," Reliance Power said.