Riots in Mumbai as bills skyrocket after Adani's takeover as a power supplier

The billionaire Gautam Adani's intrusion into the distribution of power began with an offensive on social media, the Congress Party and some consumer companies greatly increase the bill in October. But the company said it was facing "malicious" propaganda because the regulator had increased tariffs based on a motion filed before regaining control and that electricity consumption had increased by 18% over this period.

Several Mumbai inhabitants of the circle Adani Electricity previously controlled by [Relance Infrastructure] (19459009) – stated that there had been a spike in their bills in October. Mumbai Congress President Sanjay Nirupam has accused the company of "looting" consumers, with banners and storage panels across the city reporting a 50 percent increase in charges. electricity and erroneous meter readings.

"An undue perception was created around Adani The electricity bill of an influential political party leader using various irresponsible expressions, such as" booty, " not realizing that this implied rates decided by an independent quasi-judicial body MERC, after following the regular procedure of public hearing. The statements that have been made are totally irresponsible, false, incorrect, misrepresented, have false and malicious insinuations and insinuations, "said Adani in response to ET's request.

Adani Electricity began charging customers in Mumbai from September after finalizing the acquisition of Mumbai's power distribution business from Reliance Infrastructure and experienced difficulties in the first two cycles billing.

Some Adani consumers witnessed an increase in their bills for September, attributable to its inability to read meters in some areas due to "internal turmoil over some past issues", with Insurance to transfer the credit after reading the counters. is made. Two consumers confirmed to ET that they received the credit in the following invoices.

But some consumers complained on social media that bills were significantly higher in October. Some said it had doubled from the previous month, but Mr. Adani termed this period as seasonal, as consumption typically increases in October, one of the city's hottest months in the world. because of rising temperatures after the removal of the monsoon.

The company attributes this increase to the revised tariff approved by the regulator and to an average increase in consumption of 18% in October compared to September.

AND saw some consumer bills for which the number of units used doubled from one year to the next in October. A consumer shared his bill where he had been charged Rs 29,000 in October for Rs 3,500. During his visit to Adani 's office, he was told that he was in charge. was an "accounting error" and the amount had been reduced to Rs 4,000.

The distribution of electricity is a regulated activity in India. Prices are determined by the regulator after taking into account all fixed and variable costs. In an order dated September 12, MERC approved a revision of the state electricity utility tariffs, Brihanmumbai Electric Supply and Transportation Undertaking and Maharashtra State Electricity Distribution Co, as well as private distributors of the energy business. Tata Power Company and Reliance Infrastructure, which is now known as Adani Electricity.

Adani Electricity stated that the revised tariff applicable from September had been increased to 4.78 rupees the unit, against 4.42 rupees the unit for the first 0-100 units consumed and to 8.58 rupees / unit starting from 8.04 rupees / unit for the next 101. 300 units. Rates for 301 to 500 units have been increased by 30 percent, while those of more than 500 units have been increased only marginally.

"The increase in rates has no correlation with Adani's badumption of distribution in Mumbai. It is only by chance that the timing of the tariff revision coincided with the takeover, "the company said. Reliance Infrastructure had filed a rate application with MERC in December 2017. The public hearing review was ordered on September 12, but the public hearing was held on August 12. Adani took control of RInfra's electricity business in Mumbai on August 28th.

Last year, in December, Reliance Infrastructure and Gautam Adaniled Adani Transmission signed a definitive agreement for Mumbai's previous power generation and distribution business, involving a transaction valued at 13,251 crore. Reliance Infrastructure will also obtain regulatory badets under approval estimated at 5,000 crores and a net working capital at closing estimated at 550 crores, bringing the total to approximately 18,800 crores.