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Home News Power Sector News OERC notice again to Reliance managed discoms - Nesco, Southco and Wesco

OERC notice again to Reliance managed discoms - Nesco, Southco and Wesco

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BK Das, Chairperson, OERCThe Orissa Electricity Regulatory Commission (OERC) issued fresh notices to the Reliance Energy Limited (REL) and its three subsidiaries - Nesco, Southco and Wesco - to file objections to the petition of labour leader Sarat Chandra Mohanty.The regulatory commission initiated proceedings against the REL-managed distribution companies after the Supreme Court set aside the order of the Appellate Tribunal for Electricity (ATE) which had quashed the OERC directive.

As that the REL-managed distcoms had been violating the provisions of distribution licence, Mohanty in a petition to the Commission in 2005 had demanded cancellation of power distribution licence of the utilities.On January 27, 2006, OERC issued show-cause to REL and the distcoms as to why their distribution licences should not be suspended in public interest.
‘‘Prima facie, the distcoms have violated the terms and conditions of the distribution licence and it is necessary in the public interest to suspend their licence,’’ the Commission observed and appointed an administrator for each of the companies.

The distcoms had challenged the OERC order in the appellate tribunal which quashed the OERC order and restored the management to the respective REL subsidiaries. Mohanty and OERC moved the Supreme Court separately against the appellate tribunal order in March 2007 and the apex court dismissed the appellate tribunal order on January 5.

Source - Express News Service

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