The wheeling should be allowed by MERC in Mumbai

The Reliance menace of increasing power tariff has been on hold for some time
but before that happens we , the consumers must be allowed to choose supplier
thru' wheeling charges. It is very clear that power from TATA is much cheaper
,almost 50% (for Commercial customer) of Reliance charges even after paying
the 0.88 Rs / KWH wheeling charges and 9% losses.

For domestic single phase consumer it is about 20% cheaper.

Lets have a look at it..

The heavily hurt customers are the commercial ones , the LT-2 : This category
comprises the business houses , commercial buildings , small SMEs and the
domestic consumers whose monthly consumption is more than 300 KWH.

LT-2
Tat a Power Charges for LT2 Reliance Power
Variable Rs 4 .65 / KWH Rs 11.36 / KWH
Fixed Rs 150 / KVA Rs 150/KVA
Wheeling charges Rs 0.88 / KWh 0
Wheeling losses 9% 0

13% of Energy REL has ED and ST

Excise dut y charges+FSA
TSE Rs 0.23 / KWH
Power fact or penalt y Below 92% Below 92%
Powe fact or incent ive Beyond 95% No incent ive

For Reliance the most sucking factor is for each KWH they charge Rs 11.36
where as for the same the TATA rate is Rs 4.65. Even after paying 9% loss and Rs
0.88 /KWH wheeling charges the effective rate becomes Rs: 5.95 / KWH which is
much below the Reliance rate.

Here is an example to clear the cloud further.

REL B ill T a ta - Ta ta
K VA a m o u n t P o w e r Add 9% K VA T a ta -En e rg y Ta ta Whe e lin g P o w e r fa cto r p o w e r B ill
Mo n th K WH De m a n d (RS) Fa cto r to K WH cha rg e cha rg e s C ha rg e s p e n a n ly E-Du ty T SE (RS)

Ap ril'0 9 38688 99.11 517390 99.93 42170 16204 179899 37110 0 23386.9 9699 266299
Ma y'0 9 37160 95.99 486477 99.96 40 50 4 15694 172794 35644 0 22463.22 9316 255911
Ju n e '0 9 380 40 98.18 49790 3 99.94 41464 16052 176886 36488 0 22995.18 9537 261958

The setup maintains the power factor to the tune of 99.9+ therefore instead of
paying penalty it earns power factor incentive. The REL bill is after considering the
incentives etc. When the same power is taken from TATA the net effective bill
becomes just about 50% of the REL bill. There is some doubt about the 'Tata-KVA
charge' if they do not consider 9% loss here then this column will be reduced
further.

Similarly for the domestic customers here it is...

Tata Power Charges for Domestic Tata Power Reliance

Energy charges RS/KWH
Fixed charges RS/connection
Consumption during a month
Single Phse
Rs/KWH Three Phase
0 to 100 KWH 30 1.3 1.72
101 to 300 KWH 50 2.7 4 .02
100
301 to 500 KWH 50 4 .2 7.02
Beyond 500 KWH 100 4 .9 8.27
TSE 0.15 0.15
Wheeling charges 0.88 0.88
Losses 9% 9.00%
ED 13% of energy charges

The comparison is concentrated for single phase users only. For three phase users
some data may be further confirmed from Tata Power.

A comparison may be considered for further clarification

For a 4 97 KWH consumpt ion Relince t ook Rs:3075 Domest ic cust omers (single phase)
As Per Tat a power it comes like t his
Add 9% fixed variable Wheeling Tat a Power
TSE ED
loss t o it charges charges charges Charges
KWH 4 97 54 2
Upt o 100 KWH 100 30 130
101 t o 300 KWH 200 50 54 0 81 196
4 77
301 t o 500 KWH 200 50 84 0
Above 500 KWH 42 100 205.8
130 1510 4 77 81 196 24 70

The REL power was for 497 KWH. After adding 9% wheeling losses the net
effective KWH is 542 KWH. For this much energy the Tata power bill becomes
Rs:2470 which is about 20% less than the Reliance power.

Therefore, The Tata power consumers must remain with Tata and for the Reliance
consumers , MERC should allow the get Tata power thru' wheeling into the REL laid
lines.

Future Scenario: Once the REL power is offloaded to Tata power , REL will stop
purchasing costly power from outside , their charges will go down and the market
will be boiled up for fresh competition. The supplier market will be turned into a
buyers market.

Let us hope it happens soon..

S. Bera
Mumbai