Delhi discoms paid Rs 460 cr to generators without getting power: Report

Discoms say report speculative and matter is sub judice

The Reliance and Tata-owned three private power distribution companies (discoms) in Delhi paid Rs 460 crore to generators until March 2013 without receiving electricity, the CAG has said in its draft report on the audit of BSES Rajdhani (BRPL), BSES Yamuna (BYPL) and Tata Power Delhi Distribution (TPDDL), according to a Times of India report. Though the draft says this “dead cost” was loaded on to the consumers in the name of power purchase cost, it is a standard practice in the power sector where procurers have to pay generators a portion of the fixed cost under the power purchase agreements (PPAs).

According to the media report, the draft CAG report also said the discoms inflated their dues from consumers by Rs 8,000 crore, manipulated consumer figures, bought costly power, suppressed revenue and gave undue favours to group companies. The discoms rejected the report as false, mischievous and speculative. “We are shocked at the highly irresponsible, factually incorrect, mischievous and distorted reporting in a section of the media, on a purported CAG audit report on the Delhi discoms. These media reports tantamount to blatant contempt of the order of the Delhi High Court which has put a blanket prohibition on publication of any CAG audit report as the matter is sub-judice,” a BSES spokesperson said in an emailed statement.

A senior government official, however, confirmed the existence of a draft report, saying that it has been sent to the discoms, the Delhi government and the Delhi Electricity Regulatory Commission (DERC) for their comments. According to CAG procedure, an exit conference is conducted before the report is finalised.

“During the course of audit, and in the prescribed exit conference mechanism, the discoms will respond to any observations as and when called upon to do so by the CAG. The discoms are exploring various options in respect of the improper and illegal media reporting, in particular its impact on the administration of justice and the sanctity of orders of Delhi court, and shall proceed as legally advised,” the BSES spokesperson said. He added the audit process was still not complete and hence, it was premature to allege the CAG has arrived at any adverse conclusions against the discoms.

In a similar statement, Tata Power-owned TPDDL said the allegations and claims made in some sections of the media in relation to the CAG draft audit report of discoms are speculative in nature, the veracity of facts cannot be ascertained, no report has been finalised by the CAG and the matter is sub-judice. “As a responsible corporate, TPDDL has always adhered to ethical practices, worked in the consumer interest and is not involved in any wrongdoing,” TPDDL said.

According to the media report, the audit found discoms paid fixed charges of Rs 353 crore to Pragati-III till 2012-13, corresponding to the declared capacity of the plant, of which fixed charges of Rs 166.82 crore were paid without getting power. Similarly, fixed charges of Rs 201 crore were paid to gas-based power plants of NTPC without getting power. Also, TPDDL paid Rs 93.5 crore out of Rs 140.40 crore as fixed charges to Rithala plant without getting power during February 2011 to March 2013.

Speaking to reporters on the issue, Delhi Power Minister Satyendra Jain said, “I have seen the media reports on CAG audit disclosures on discoms; they seemed true but it has to be perused and probed thoroughly.” He said a “thorough probe” will be conducted to investigate the mismanagement highlighted by the CAG report.

Jain added it was the Aam Aadmi Party (AAP) government which had from the beginning itself flagged off concerns on the running of the discoms and called for an audit of all power discoms to rein in the exorbitant prices of electricity in Delhi.

Chief Minister Arvind Kejriwal-led AAP government in Delhi had earlier claimed the high power tariffs in the national capital are unjustified. It had ordered a special CAG audit of Delhi’s power sector in January 2014. The discoms are currently contesting in the Delhi High Court the state government’s power to order their CAG audit.

DIFFERENT TAKES

• Media report says CAG draft audit report has found Delhi discoms inflated regulatory asssets, paid to generators, without receiving electricity and bought costly power
• BSES says the report is false, mischievous and speculative; the media report amounts to contempt of  court; matter is sub judice and audit is still incomplete
• TPDDL says the allegations are speculative, the matter is sub-judice, the veracity of facts cannot be ascertained, and TPDDL is not involved in any wrongdoing
• Delhi power minister says the media reports seemed true but the issue has to be probed thoroughly