Removal of Exclusivity in the Supply of Electricity to Mumbai

Mumbai is the commercial and entertainment capital of India.

Besides housing a larger part of the Film & Television Industry, it houses important Financial Institutions, such as the Reserve Bank of India, the Bombay Stock Exchange and the National Stock Exchange of India.

The population of Mumbai is 1.77 crores as per the 2001 census (incl the suburbs) and has a density of about 29,000 persons per sq km. The overall literacy rate of the city is above 86\%, which is higher than the national average.

To the country, Mumbai contributes :
~ 10\% of all factory employment
~ 40\% of all income tax collections
~ 60\% of all customs duty collections
~ 20\% of all central excise tax collections
~ 40\% of India's foreign trade
~ Rs 4000 crores in corporate taxes

With this kind of profile, it is strange that Mumbai citizens are being held hostage when it comes to the supply of Electricity.

There is a virtual MONOPOLY in the supply of this basic utility.

Electricity reaches Mumbai through:
1. The Brihan-Mumbai Electric Supply & Transport Undertaking
2. Reliance Energy Ltd.
3. Maharashtra State Electricity Distribution Company Ltd.
4. Tata Power Company Ltd.

However, these four supply electricity only to designated areas and there is NO OVERLAP, creating an unhealthy (for the consumer) situation.

A recent example is the current tariff hike (MERCs October 2006 Tariff Order) that has thrown residential, commercial and industrial consumers in a tizzy.

The Electricity Act, 2003 encourages competition in the generation and supply of electricity so that the average tariff rates are lowered and the consumer may enjoy lower tariffs, on account of the competition.

All other utilities are being provided either by the government/civic authorities (like water, public transport, drainage) or by multiple private/government companies with NO EXCLUSIVITY, e.g.

> Telecom - MTNL, Reliance, Hutch, Tata, Airtel, etc.
> Cooking Gas - HPCL, BPCL, Mahanagar Gas, etc.
> Auto fuel - HPCL, BPCL, IOCL, Reliance, etc.

Why, then, shouldnt Mumbai consumers be allowed the right to choose their own electricity supplier??

We strongly believe that supply of electricity in Mumbai should be thrown open to competition and have, therefore, signed this online petition.

A few of us will also write a (brief and concise) letter, directly to :

Dr. Manmohan Singh
The Prime Minister of India
South Block, Raisina Hill,
New Delhi 110 011.

Shri Sushil Kumar Shinde, Union Minister
Ministry of Power, Govt. of India
Shram Shakti Bhavan
Ministry of Power
New Delhi 110 001.

Shri A.K. Basu, Chairman & Chief Executive
Central Electricity Regulatory Commission
Core 3, 5th Floor, Scope Complex
7 Institutional Area, Lodi Road,
New Delhi 110 003.

Dr. Pramod Deo, Chairman
Maharashtra Electricity Regulatory Commission
World Trade Centre, Center No.1,13th Floor
Cuffe Parade, Colaba
Mumbai 400 005.

Thank you for your time and we trust appropriate and immediate action will be taken.