OERC Revokes License To Reliance Managed 3 Power Utilities in Odisha , Terms Performance Highly Unsatisfacatory
By B.Maharana
04 March , Bhubaneswar (odibizinfo)
In a major major shocker ,the Orissa Electricity Regulatory Commission (OERC) Wednesday revoked the licence of three private power Distribution Companies–NESCO, WESCO and SOUTHCO –all owned and managed by Anil Ambani controlled Reliance Energy Limited.
The three distribution companies were supplying power to the consumers since 1999. This is the first ever incident of revocation of licence by the Regulatory Commission u/s19 of the electricity Act in the country for ineffective performance.
OERC has temporarily handed over the management of the three discoms to Gridco (formerly Grid Corporation of Odisha), which held 49% stake in the companies. Reliance Infrastructure owned the majority 51% share in these distribution firms
Chief Managing Director GRIDCO has been appointed as the Chief Administrator of the three Power Utilities under the overall supervision of Secretary Energy to run the show.
OERC , the Power Regulatory Body also asked the Reliance Energy to provide all the information relating to the management, consumer related data and distribution of power to the newly appointed Body with immediate effect.
OERC sources said the licence of the Distribution Companies were revoked u/s 19 of the Electricity Act mainly for ineffective performance, inability to reduce loss and transfer of shares without the approval of the Commission.
As per the observation of the OERC, the Reliance Energy has been evading the Body’s direction to undertake Energy Audit, installation of Meters, infuse proportional investment for strengthening the power distribution infrastructure during the last 15 years . .
While NESCO was supplying power to Balasore, Bhadrak,Keonjhar, Jajpur and Mayurbhanja, WESCO was supplying powerto undivided Sundergarh, Sambalpur,Bolangir and part ofKalahandi and SOUTHCO was entrusted the responsibility ofsupplying power to Ganjam,Koraput,and part of Kalahandi.
As per the audit report the accumulated loss of NESCO was Rs 906.31 crore, WESCO had sustained Rs 715.62 croreloss and SOUTHCO Rs 802.30 crore till 2012-13. Similarly the net worth of NESCO was put at Rs 775.21crore, WESCO at Rs 595.63 crore and SOUTHCO was Rs 706.59crore as on 2012-2013.