Dr. Pramod Deo, Ex-Chairman CERC in an article of Financial Express at 10/2/2020 has analyzed the system of multiple licensees in prime and creamy area of Mumbai, and whether the multiple licensees have succeeded in ensuring competition and multiple supply choice of consumers.The article concludes that provision of consumer choice has failed in Mumbai and that the proposed amendment of Electricity Bill 2021 will not achieve the goal of consumer choice resulting in lower tariffs .

           A major factor is that with two private sector licensees operating in Mumbai, the commercial and legal disputes have proliferated resulting in multiple court cases extending to decade, and yet unresolved. The following legal cases have been studied/quoted by Dr. Deo. Dispute between Reliance and Tata in 2003 which went up to Supreme Court New Delhi and was decided in 2008. For implementing this order, there was more litigation and MERC specified the protocol in 2011.

          Even then, in spite of various Court and MERC orders, there is a prevailing dispute between BEST and Tata Power regarding operation of multiple licenses in Island city of Mumbai which is BEST area. The dispute still remains unresolved.

          It can be concluded from the article that while the multiple licensee experiment has failed in creamy area of Mumbai, the only achievement is proliferation of disputes and court cases, and the only beneficiaries are the advocates. Ministry of Power in its Draft Electricity (Amendment) Bill – 2021 attempts to introduce competition  and consumer choice, but as concluded by Dr. Deo “the proposed amendment misses the point”.Legal disputes that started in 2002-03 between licensees still remain  as “an inconclusive impasse between BEST and Tata Power” even after 18 years

      Since such is the position in case of multiple licensees in prime commercial are of Mumbai one cannot expect the model to succeed in any other part or City of the Country.  The Draft Electricity (Amendment) Bill 2021 has failed to take cognizance of legal problems that have caused Mumbai experiment to fail, and the Ex Chairman CERC Dr Pramod Deo  has questioned  how the proposed amendment 2021 will achieve the objective. The likely result will be more disputes and more court cases with no end result  even after decades of  legal  proceedings.

AIPEF  Conclusion  .  The Article by Dr Deo  has analysed how and why the  system of multiple licensees and consumer choice has failed in Mumbai even though it is a creamy area . Dr Deo has concluded that since the Draft Electricity (Amendment) Bill 2021  has failed to address the issues and “missed the point”. GOI  cannot and must not ignore the opinion of Dr Deo and thereby must  take the logical corrective step by withdrawing the Electricity (Amendment) Bill 2021. Copy of Financial Ex article by Dr Deo is attached.

With Regards.

Sincerely Yours

Shailendra Dubey