 "Find a way to clear Delhi discoms' dues: Tribunal")
The Appellate Tribunal for Electricity (ATE) on Tuesday directed the Delhi Electricity Regulatory Commission (DERC) to decide on a plan for clearing the past dues of the city’s three private distribution companies (discoms), worth a little over Rs 11,000 crore.
Last week, DERC had informed the Reliance- and Tata-owned discoms of a plan to liquidate the accumulated regulatory assets (RAs) of Rs 8,000 crore as on March 2012 over eight years beginning 2014-15.
“The Commission has to decide a roadmap for liquidation of the accepted RAs, keeping in view the interests of the consumers and the discoms after satisfying itself that there are no constraints in arranging finances for making regular payments of the current dues by discoms to generation and transmission companies,” ATE said in an order passed on Tuesday, on an appeal by DERC.
The discoms are yet to pay about Rs 5,000 crore of dues to Delhi gencos and Delhi Transco, a power transmission company owned by the city government. ATE, which hears appeals against orders passed by power regulators, also said the liquidation plan would be subject to changes, depending on the outcome of a Comptroller and Auditor General of India audit of discoms’ accounts.
The roadmap will also depend on any financial restructuring of the discoms as advised by DERC.
The regulator’s plan includes liquidation of the Rs 8,000 crore of RAs. It would help the financially-ailing discoms raise additional financial resources from banks but increase the rate burden for consumers.
As part of the plan, to begin with, discoms would be allowed to recover Rs 1,671 crore of RAs from consumers through rate rise next year.
Last week, DERC had informed the Reliance- and Tata-owned discoms of a plan to liquidate the accumulated regulatory assets (RAs) of Rs 8,000 crore as on March 2012 over eight years beginning 2014-15.
“The Commission has to decide a roadmap for liquidation of the accepted RAs, keeping in view the interests of the consumers and the discoms after satisfying itself that there are no constraints in arranging finances for making regular payments of the current dues by discoms to generation and transmission companies,” ATE said in an order passed on Tuesday, on an appeal by DERC.
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Reliance Infrastructure-owned BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd supply power to about 70 per cent of the city’s 3.2 million consumers, while Tata Power Delhi Distribution Ltd caters to the rest.
The discoms are yet to pay about Rs 5,000 crore of dues to Delhi gencos and Delhi Transco, a power transmission company owned by the city government. ATE, which hears appeals against orders passed by power regulators, also said the liquidation plan would be subject to changes, depending on the outcome of a Comptroller and Auditor General of India audit of discoms’ accounts.
The roadmap will also depend on any financial restructuring of the discoms as advised by DERC.
The regulator’s plan includes liquidation of the Rs 8,000 crore of RAs. It would help the financially-ailing discoms raise additional financial resources from banks but increase the rate burden for consumers.
As part of the plan, to begin with, discoms would be allowed to recover Rs 1,671 crore of RAs from consumers through rate rise next year.