BHUBANESWAR: Even as three distribution companies managed by Reliance Infrastructure Limited (RIL) have not fulfilled a single condition of the Orissa Electricity Regulatory Commission (OERC), the regulator has not initiated any action against the licensees. In its May 12 conditional order, the regulatory commission had given an ultimatum to Nesco, Wesco and Southco to improve their performance by September-end or face cancellation of licence. The regulator had asked the utilities to renew the shareholder’s agreement and service the NTPC bonds worth ` 400 crore by September 30. If no discernible improvement in the distribution losses and customer service are noticed by the deadline, suitable action will be taken to cancel their licences, the commission order said. Trade union leader Sarat Mohanty sought to know from the OERC as to why action had not been initiated against the three utilities after failing to meet any of the conditions stipulated by it. When the three utilities have been violating all the conditions of the distribution licence and taken the Government to court on all issues pertaining to shareholder’s agreement, the silence of the latter is baffling, he remarked. Ironically, the OERC order came in pursuant to a case filed by Mohanty in 2005 demanding cancellation of distribution licences of the three utilities for allegedly violating licensing norms. The Supreme Court had also issued a directive to OERC to proceed with the matter of show-cause notice slapped on the three distcoms on January 27, 2006. Instead of suspending their licences, the OERC gave another opportunity to the three licensees for arranging funds for capital investment, to take effective steps for energy audit, arrest theft of electricity, improve consumer service and redress consumer grievances. Besides settling disputes with Gridco over NTPC bond servicing and other dues within the time frame, the commission directed the three utilities to take some perceptible action towards improvement of performance, Mohanty said. The commission had also directed the three utilities to contribute their share of counterpart funding for infrastructure development in the State. Even though the RIL utilities have not achieved a single milestone set by the commission, the Government decided to provide financial assistance to the distcoms under the ` 1,200-crore capital expenditure (CAPEX) programme for system improvement. Though the regulator had cautioned the utilities against effecting load-shedding and reduction of purchase of power from Gridco, unscheduled power regulation is a routine feature, he said. Demanding a CBI probe into the alleged irregularities of the three companies, Mohanty threatened to launch a fresh agitation if the Government failed to clear its stand within two weeks.
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