MSEB holding co dir quits, exposes state power officials in letter

Nagpur: RB Goenka, the director of MSEB Holding Company Limited (MSEBHCL), has resigned slamming the power officials and charging them with ignoring most of the resolutions passed.
In his resignation letter (dated January 29) addressed to principal secretary (energy), Goenka stated, “On a number of issues raised by me and directions issued by MSEBHCL, the subsidiary companies (MSEDCL, Mahatransco and Mahagenco) did not follow the directions.”
Citing the issues, Goenka stated that one of them was taking prior approval for tariff petitions before filing with Maharashtra Electricity Regulatory Commission (MERC). MSEBHCL resolved that any petition or appeal relating with or affecting consumers’ tariff may be submitted to the Board of MSEBHCL for information. In spite of the above resolutions and directives, all the three subsidiary companies filed tariff petitions to MERC without any discussions in MSEBHCL.
Goenka pointed out that two tariff hike petitions were filed by MSEDCL after discussion in MSEBHCL and suggestions were given by the directors which were implemented and the tariff was within control. But the last tariff petition was filed with MERC and post facto approval was asked from MSEBHCL without any discussions on the tariff.
MERC allowed an increase of Rs8268 crores only in ARR in spite of the fact that MSEDCL has requested for a huge deficit of Rs. 34,646 crores.
The power expert further stated that he had many suggestions for rationalization of tariff but they were not discussed at all. “I suggested in the past meeting that special MSEBHCL board meeting should be called for discussing the tariff and amended petition be filed with MERC by incorporating suggestions of board of directors of MSEBHCL,” he added.
MSEDCL suppressed the facts in the case of converting consumer tariff from continuous to non-continuous in which there was a loss of revenue to the tune of more than 800 crores. This issue was regularly raised by Goenka for three years. “MSEDCL did not submit a proper reply and did not fill up the format issued by me as per directives of MSEBHCL,” he said.
The holding company board had resolved that the report of the committee formed by the board of directors in relation to the conversion of MSEDCL’s consumers’ tariff from HT continuous to HT non-continuous be submitted to the Government of Maharashtra. However, MSEDCL did not comply with this directive.
The Board had also directed to examine feasibility of creating a dedicated position in the Holding Company for regular monitoring of the pendency of court cases and for submission of a periodic action taken report to the Board. Even after this resolution was passed, MSEDCL filed a tariff review petition with MERC on the issue of approving non continuous tariff to some selected consumers and MERC did not allow about Rs. 180 crore in annual revenue requirement (ARR) to MSEDCL because of such illegal change of tariff category.
Goenka had also pointed out in the Board meetings that compliance of order issued by consumer grievance redressal forums (CGRFs) and ombudsman were kept pending. He had demanded that a time frame should be fixed for completion of infrastructure projects of power companies.
According to the power expert, decentralization of power and restructuring of MSEDCL in four regions had not provided any benefit since the regional directors were powerless and powers are centralized at the head office only.
HIGHLIGHTS OF RESIGNATION LETTER
* Tariff petition filed by MSEDCL without Holding Co permission
* MSEDCL did not file reply regarding Rs800 crore scam
* MSEDCL did not submit a report in this regard to state govt
* MSEDCL filed review petitions ignoring Holding Co directives
* CGRF and ombudsman orders not being followed
* Decentralization of power in MSEDCL a farce