By Nageshwar Patnaik in Bhubaneswar, March 24, 2015 :

The Appellate Tribunal for Electricity [ATE] on Tuesday fixed March 30 next to pass the interim order on stay application of Anil Ambani-led Reliance Infra [R-Infra] controlled three power distribution companies [Discoms] challenging revocation of their licenses by the Odisha Electricity Regulatory Commission [OERC].

Appearing for three Discoms – Nesco, Southco and Wesco, Kapil Sibal reiterated that the OERC’s order revoking their licenses for power distribution business saying that the order “is illegal and arbitrary”.

Referring to section 19 of the Electricity Act, Sibal told the bench that the OERC should have conducted inquiry and been satisfied that public interest has been violated. OERC has by-passed procedure under 19[5] by revoking license and appointing administrator on the same day, Sibal added.

Appearing for Gridco, Dushyant Dave defended the decision saying that administrator had to be appointed failing which the system would have collapsed and the arrangement is running well.

Gridco will submit its reply in two days time following which the ATE will take up the issue of the Discom’s plea for interim stay on the revocation order of the OERC.

In an unprecedented step, the OERC early this month had revoked licenses of these companies for allegedly disobeying its orders on improvement in power supply efficiency.

The ATE had issued notices to OERC and Gridco to put forth their replies on the issue. Both the regulatory body and utility had sought time for two weeks to furnish detailed reply. Accordingly, the ATE has asked them to appear before it on March 24 with their detailed replies to the notice.

The OERC has appointed chairman-cum-managing director [CMD] as administrator of the three [Discoms] NESCO, WESCO and SOUTHCO which transmits power to northern, eastern and southern areas of the state.

The Discoms had pointed out that they had implemented the OERC’s order but the State Commission has persistently fixed loss level targets without taking into account the ground realities. The ATE in its four earlier judgments had rapped the OERC saying that the lacked judicial approach.