Apart from finding a solution to the issue of stand-by charges among the three power utilities, the proposed committee will also address other areas of dispute between BSES and TEC. These include the norms to decide the consumer base for the two companies and distribution areas.

On the issue of the increase in stand-by and demand charges, TEC believes that MSEB's decision was uncalled for. However, if the electricity boardincreases these rates, TEC wants BSES to share these as the latter has a similar stand-by arrangement with it. BSES, on the other hand, does not want to share the increase arguing that TEC should settle its grievance with MSEB instead of asking its bulk consumer to pay.

Secondly, BSES maintains that TEC has already increased its power tariff to absorb the burden of additional rates. BSES which buys around 30 per cent of TEC's total output thus already pays part of the increased rates, the company official say.Besides, BSES also wants the new committee to review the definition of bulk consumer, which was decided over 45 years ago. As per the the present agreement, TEC can cater to the bulk consumers which have a demand of 1 mva and above, while consumers having lower demand are to be catered to by BSES.

BSES argues that the limit of 1 MVA was fixed when BSES'total requirement was 20 MVA. This has now increased to 1000 MVA. The company therefore feels that the limit should be increased to 20 MVA. However,BSES has been supplying power to some consumers whose demand is over 1 MVA for several years. The conflict began only last year, when TEC started wooing some of these consumers. Ironically, it was BSES' lower offtake (due to higher generation) from TEC that drove the latter to assert its rights.

This is the second time the dispute between TEC and BSES has been referred to a special committee. Earlier in 1997, the state had to set up a special committee to resolve the same issue. This time, however, the concerned parties are looking for a long-term solution. There is a need for a formula to work out these charges, say industry experts.

Meanwhile, the state has yet to set up the state electricity regularity commission which was planned almost a year ago, which could have resolved the issue.