Pay licence fee and late payment charge since 2003-04: DERC

New Delhi: The national Capital’s power regulator DERC has directed the New Delhi Municipal Council (NDMC), a deemed power distribution licensee, to pay a licence fee at the rate of 0.05 per cent of the annual billed amount and a late payment charge, effective from 2003-04.

Taking suo motu cognizance of the non-payment of licence fee by the NDMC, under section 142 of the Electricity Act, 2003, the Delhi Electricity Regulatory Commission (DERC) had reserved its judgement in August last year which was pronounced earlier this month.

The commission has directed the NDMC, having over 46,000 consumers in Lutyens’ Delhi, to comply with its direction within a period of three months. A senior NDMC officer said a comment on the issue can be made after going through the DERC order.

A copy of the DERC order stated that the Accountant General (Audit) on March 8, 2019 had made an audit observation that the NDMC is a deemed licensee to supply electricity in the area under its Jurisdiction.

It was also observed that the NDMC, being a deemed distribution Licensee under The Electricity Act, 2003, is liable to pay 0.05 per cent of the annual amount billed from the year 2003-04 onwards and an interest at the rate of one per cent per month on the delayed payment.

The NDMC counsel appearing in the matter had argued that under section 197 of New Delhi Municipal Council Act, 1994, the council is a deemed licensee under the old Act. Therefore, they continue to be a deemed licensee and are not required to take a licence under section 14 of The Electricity Act 2003.

It was observed by the DERC, however, that by enactment of The Electricity Act, 2003, the earlier Electricity Act, 1910 was repealed. Section 14 of The Electricity Act, 2003 deals with the grant of licence.

The commission said that licences to discoms BRPL, BYPL and TPDDL, have been

in line with the Delhi Electricity Reforms Act (DERA), 2000, under which they pay a fee equivalent to 0.05 per cent of the amount billed during the previous financial year.