The Supreme Court has admitted Anil Ambani-led Reliance Infrastructure’s (Rinfra) plea on payment of cross-subsidy (CSS) charges by customers who migrated from its distribution firm to rival Tata Power Company?s distribution services in Mumbai.
The two companies generate electricity in the Mumbai area. A Bench, headed by Justice SS Nijjar, admitted RInfra’s statutory appeal and tagged it with a similar petition filed by Hotels and Restaurants Association of Western India, which had sought a stay on the regulator’s order to levy a cross-subsidy surcharge on customers, who had migrated from RInfra to TPC.
The hotel body has challenged the Appellate Tribunal for Electricity’s judgment that upheld the Maharashtra Electricity Regulatory Commission’s order of July 2011 that allowed the distribution licensee RInfra to recover CSS from ?high-power-consuming? consumers who have switched over to TPC.