JUDGEMENT
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(1.) M/s. Serene Properties Pvt. Ltd. (hereinafter referred to as 'Petitioner') has submitted a Petition on 26 December, 2013 for allowing it to charge consumers in
its licence area, i.e., the IT & ITES SEZ area at MIDC, District Thane, the same
Tariff that is applicable for the respective category of consumers in the MSEDCL
area of supply, as modified from time to time, and for approving the proposed
Tariff schedule under subsection 1 of Section 62 of the Electricity Act, 2003.
(2.) The prayers of the Petitioner are as under:
" a) Allow SPPL to charge consumers in its license area at the same tariff that is applicable for the respective category of consumers in the MSEDCL area of supply, as modified from time to time. b) Approve the tariff schedule proposed by SPPL. c) Condone any inadvertent omissions / errors / shortcomings and permit SPPL to add / change / modify / alter this filing and make further submissions as may be required at a further date d) Pass such Orders as the Hon'ble Commission may deem fit in the facts of the present case."
(3.) Facts of the Case as stated in the Petition are as follows:
3.1 M/s. Serene Properties Pvt. Ltd. is a Company incorporated under the Companies Act 1956 having its registered office at Plot No. C -30, Block 'G', Bandra Kurla Complex, Mumbai.
3.2 The Petitioner is setting up a IT/ITES SEZ at Plot No. 3, Kalwa, TTC Industrial Area, MIDC, Thane.
3.3 The Petitioner has been notified as the developer of the SEZ by the Ministry of Commerce and Industry (Department of Commerce) , Government of India vide notification No. 1876 (E) dated 2 November, 2007.
3.4 Since the Petitioner is deemed Distribution Licensee in terms of clause (b) of Section 14 of the Electricity Act, 2003, the Petitioner had filed a Petition before the Commission for taking on record the deemed Distribution Licensee status of the Petitioner and for issuing specific conditions of distribution licence to the Petitioner.
3.5 Vide Order dated 11 April, 2012 in Case No. 157 of 2011, the Commission has taken on record the deemed distribution licensee status of the Petitioner. Subsequently, vide notification dated 21 August, 2013, the Commission notified the MERC (Specific Conditions of Distribution Licence applicable to M/s. Serene Properties Pvt. Ltd.) Regulations, 2013.
3.6 The Petitioner is the second licensee in its licence area with MSEDCL being the first licensee.
3.7 The Petitioner has developed SEZ for IT and ITES which is included under HT I (Industrial Category) by the Commission for Tariff purpose. The Petitioner does not have any other residential, commercial, agriculture, Railway category consumers in its SEZ area.
3.8 Electricity Distribution Business is not the main activity for the Petitioner. It is only the support services extended to its consumers under the main activity. Presently, the Petitioner is under various stages of development of its electricity distribution business.
3.9 Nine numbers of buildings are already occupied within the licence area. Each building is supplied separately (under HT -I Industrial Category) at 22 kV by MSEDCL, at present. Existing maximum demand is 10560 kVA and annual units consumption during FY 2012 -13 was 49.98 MU and annual amount paid to MSEDCL was Rs. 41.66 Cr.
3.10 The Petitioner has only two categories of consumers ( i.e. 41 nos. of LT Industrial and 7 nos. of HT Industrial consumers) The power consumption for these consumers for the past year was 60.19 and 0.99 MU respectively.
3.11 The Petitioner has referred to second proviso to Section 62(1) of the Electricity Act 2003 which states that in case of distribution of electricity in the same area by two or more distribution licensees, the Appropriate Commission may, for promoting competition among distribution licensees, fix only maximum ceiling of Tariff for retail sale of electricity.
3.12 The Petitioner has also referred to the Minutes of the 22nd Meeting of the Forum of Regulators (FOR) which states as under: " ...... If SEZs are set up in areas where the existing distribution licensees have not been able to build any network, their deemed distribution licensees status will help build the desired network. There was a special dispensation of tariff for such SEZ areas. One of the options could be to allow the industrial tariff of the existing licensees as a ceiling tariff for such SEZ areas. This was earlier discussed in the FOR...." (emphasis added)
3.13 Gujarat Electricity Regulatory Commission vide its Orders, has decided the Tariff of first licensee in the SEZ area to be the maximum ceiling Tariff for retail supply in SEZ area in light of the provisions of Section 62 of the Electricity Act. 2003.
3.14 The Petitioner's licence area of supply overlaps with the licence area of MSEDCL thus falls under the above proviso to Section 62(1) of the EA 2003.
3.15 The consumers have opted to set up their units within the SEZ area, under the presumption that the electricity Tariff will be the same or lower than the applicable within the MSEDCL's supply area and the consumers would not be adversely affected in terms Tariff on account of opting to set up their units within the SEZ area. It will also create a lot of problems if the Tariff within the SEZ and outside the SEZ for the same category of consumers is different.
3.16 Hence, the Petitioner has requested the Commission to allow to charge consumers in the SEZ area at the same Tariff that is applicable for the respective category of consumers in the MSEDCL area of supply.
3.17 Accordingly, the Commission has been requested by the Petitioner to approve the Industrial Tariff as applicable in the MSEDCL Tariff Schedule approved in the Tariff Order dated 16 August 2012. ;
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