It has written to Delhi Electricity Regulatory Commission (DERC) stating the same and thereby upping the stakes in a fight over CAG audit and the functioning of two distribution companies, both of which are likely to fail to regularly supply power to the consumers after 10 February.
Delhi government has offered to take over the functioning of the distribution utilities, in addition to suggesting that its own officials be appointed as the administrative authorities dealing with the distribution of electricity in the Capital.
Previously, BRPL and BYPL had alleged that they do not have adequate funds to pay the centre-owned generator NTPC for purchase of power. NTPC, which is a major supplier of power to discoms, maintains that it shall not be able to supply power beyond 10 February, unless the discoms clear their dues.
In a letter to P D Sudhakar, Chairman, DERC on Monday, Delhi power secretary Puneet Kumar Goel wrote that the BSES discoms have said that inadequate funds is the reason for their inability to pay the state-owned NTPC for electricity, thereby increasing the prospect of a city-wide blackout, and that this ‘calls for revocation of their licences by DERC under section 19(d) of the Electricity Act, 2003.’ NTPC said Anil Ambani-owned BRPL and BYPL had failed to reinstate the payment security mechanism by opening a letter of credit (LC), in favour of the generation firm within the time frame in the power purchase agreement (PPA).
NTPC’s move comes after it was forced to encash the LC opened previously by the discoms on 31 January, after they failed to clear their dues to the generator. NTPC said in its notice to the two discoms that ‘the short fall in LC with effect from is Rs 271.61 crore (in the case of BRPL) and Rs 168.29 crore for BYPL and there are pending payments amounting to Rs 96.07 crores for January 2014.’ It also said it would not regulate 1,261 MW of supplies to BRPL and 811 MW for BYPL, if both companies are unable to pay the outstanding bill.
In his letter to DERC, Goel said, ‘In case, these discoms continue with their stand, DERC may not have an alternative but to suspend their licenses immediately, as a first step, under para 13 of the terms and conditions of their distribution licences.’ The AAP, which had promised a 50 per cent cut in power tariffs, wants the discoms to reduce rates and has commissioned an audit of their operations to assess the real cost of power. It now wants the BSES to adjust the state-announced subsidy amounting to Rs 230 crore until 31 March as against the outstanding bill of Rs 4,062 crores due to Delhi government owned companies.
Delhi government has offered to take over the functioning of the distribution utilities, in addition to suggesting that its own officials be appointed as the administrative authorities dealing with the distribution of electricity in the Capital.
Previously, BRPL and BYPL had alleged that they do not have adequate funds to pay the centre-owned generator NTPC for purchase of power. NTPC, which is a major supplier of power to discoms, maintains that it shall not be able to supply power beyond 10 February, unless the discoms clear their dues.
In a letter to P D Sudhakar, Chairman, DERC on Monday, Delhi power secretary Puneet Kumar Goel wrote that the BSES discoms have said that inadequate funds is the reason for their inability to pay the state-owned NTPC for electricity, thereby increasing the prospect of a city-wide blackout, and that this ‘calls for revocation of their licences by DERC under section 19(d) of the Electricity Act, 2003.’ NTPC said Anil Ambani-owned BRPL and BYPL had failed to reinstate the payment security mechanism by opening a letter of credit (LC), in favour of the generation firm within the time frame in the power purchase agreement (PPA).
NTPC’s move comes after it was forced to encash the LC opened previously by the discoms on 31 January, after they failed to clear their dues to the generator. NTPC said in its notice to the two discoms that ‘the short fall in LC with effect from is Rs 271.61 crore (in the case of BRPL) and Rs 168.29 crore for BYPL and there are pending payments amounting to Rs 96.07 crores for January 2014.’ It also said it would not regulate 1,261 MW of supplies to BRPL and 811 MW for BYPL, if both companies are unable to pay the outstanding bill.
In his letter to DERC, Goel said, ‘In case, these discoms continue with their stand, DERC may not have an alternative but to suspend their licenses immediately, as a first step, under para 13 of the terms and conditions of their distribution licences.’ The AAP, which had promised a 50 per cent cut in power tariffs, wants the discoms to reduce rates and has commissioned an audit of their operations to assess the real cost of power. It now wants the BSES to adjust the state-announced subsidy amounting to Rs 230 crore until 31 March as against the outstanding bill of Rs 4,062 crores due to Delhi government owned companies.