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June 11, 2001
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DPC hearing challenging MERC postponed till June 12

A division bench of Bombay high court, comprising of Justice A P Shah and Justice S A Bobde on Monday adjourned hearing on the writ petition filed by Enron-promoted Dabhol Power Company, challenging Maharashtra Electricity Regulatory Commission's ad-interim order, till Tuesday.

DPC was prohibited from approaching the international court of arbitration in London as well as activating its escrow account till its next hearing on June 14, after Maharashtra State Electricity Board approached MERC in the ongoing Enron controversy.

DPC advocates argued before the court that the power purchase agreement between DPC and MSEB was signed in 1993, before the formation of the regulatory commission (1998), and hence the latter has no power to pass the ad-interim order on the subject.

The ad-interim order was a result of MSEB approaching MERC on May 25 this year, alleging violation of operating characteristics and dynamic parameters by DPC under the PPA. MERC passed its order on May 29, under section 22 of the Electricity Regulatory Commission Act 1998 and regulations 68 and 95 of the MERC regulations (1999), 'keeping in view the larger public interest and the electricity consumers of the state'.

This was challenged by DPC on June 6 in the Bombay high court upon which the MSEB had also filed an affidavit on June 9, seeking rejection of DPC's petition.

''MSEB denies all allegations made against the board and seeks its dismissal.''

UNI

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