New Delhi, July 8 (PTI): The Supreme Court today allowed Tata Power Company to supply electricity to consumers having an average consumption of less than 1000 kva (kilo volt ampere) in Mumbai and its suburbs, enabling the firm to compete on an equal footing with Reliance Energy.

A bench comprising Justice Ashok Bhan and Justice Altamas Kabir, while allowing the three appeals filed by Tata Power and MIDC Marol Industries Association, said that the sectoral tribunal had given a wrong finding that Tata Power was entitled to supply energy only in bulk and not to retail consumers.

“...We have no hesitation in holding that the Appellate Tribunal for Electricity (ATE) erred in coming to a finding that under its licences Tata Power was entitled to supply energy only in bulk and not for general purposes and in retail to all consumers, irrespective of their demand....,” the bench said.

“We quash the orders passed both by MERC (Maharashtra Electricity Regulatory Commission) and ATE and allow all these three appeals upon holding that under the terms and conditions of the licences held by it, TPC (Tata Power Company) is entitled to effect supply of electrical energy in retail directly to consumers, whose maximum demand is less than 1000 kva... Within its area of supply as stipulated in its licences...,” Justice Kabir said while writing the verdict for the bench.

The court further said that MERC had overstepped its jurisdiction by issuing orders which had not been prayed for by BSES (now Reliance Energy). MERC had, however, put certain restrictions on Tata Power with a view to creating a level-playing field.

Reliance Energy had approached MERC challenging Tata Power’s right to supply to retail consumers in Mumbai and accused Tata Power of breaching the commission’s July 3, 2003 anti-poaching order restraining it from offering new connections of less than 1000 kva.

Tata Power, in a statement today, said that it was now “entitled to effect supply directly to consumers below 1000 kva and is also entitled to supply directly to high end consumers — factories, railways etc. We await the full order.”

While stating that the Supreme Court order had vindicated its stand, as it had been supplying power to Mumbai city and suburbs for more than nine decades now,

TPC said, “We at Tata Power are committed to supplying reliable and quality power to Mumbai and welcome the judgment.”