BSES may stop standby charges to TEC

MUMBAI, MAY 24: The Reliance takeover of BSES could have a negative fallout for Tata Electric Companies TEC which is getting around Rs 42 crore per annum from BSES as standby charges. After the BSES takeover, Reliance plans to link its Jamnagar and Patalganga plant with BSES thus snapping the standby deal between the Tatas and BSES.

As the TEC depends on MSEB to make up for the differences between its generation and supply to BSES, it has passed the buck to MSEB and did not pay Rs 174 crore to MSEB. A State government committee is now looking at the entire issue.

Meanwhile, TEC has started looking at the option of supplying power in the licensed area of BSES to bulk consumers in what is termed as forward integration to counter the power generation of BSES.

In fact, TEC has already started supplying power directly to the bulk customers in the metropolis and is negotiating with others like the airport to sell power directly.