Damodar Valley Corporation (DVC) has threatened to stop power supply to two power distribution companies (discoms) in Delhi if these do not pay dues of Rs 331 crore.
DVC said it had repeatedly requested the two discoms, BSES Rajdhani Power (BRPL) and BSES Yamuna Power (BYPL), to clear their dues or face non-supply of power from its stations. As of on Thursday, BRPL had dues of about Rs 169 crore, while BYPL’s dues stood at about Rs 162 crore, it said.
When contacted, a BSES spokesperson said the company did not receive any ‘regulation notice’ from DVC. “Delhi discoms, including BRPL and BYPL, have not been able to recover costs incurred for purchase of power, owing to artificially-suppressed rates allowed by the DERC (Delhi Electricity Regulatory Commission) over the last few years. This has resulted in gradually depleting cash availability, especially on account of the reluctance of banks to extend loans to the power sector in the current regulatory environment. It has become increasingly difficult for BSES to meet payment commitments to generators supplying power. DVC is one such generating company,” stated a BSES statement.
“However, in spite of this, we have been making payments of current dues regularly, and liquidating past arrears, as and when possible. BSES expects a rate correction, which would address these discrepancies, soon. Thereafter, the situation is likely to improve,” the statement added.
DVC’s statement said the two discoms had been receiving power from it since April 2007, according to the power-purchase agreements signed between them. However, they had not yet provided a payment security mechanism (opening of LC) in terms of the agreement. On an average, DVC had supplied 139 Mw and 147 Mw to BRPL and BYPL, respectively, in the last three months.
In October, the Supreme Court had, through an interim order in a public interest suit, directed BRPL to pay arrear dues of Rs 25 crore and BYPL to pay Rs 20 crore, along with paying the current power supply bills by the due dates.
Also Read
But the discoms have not followed the order.
DVC had issued a notice to BRPL, saying it would stop scheduling of power in terms of the power purchase agreement, due to non-payment of dues of Rs 40 crore, against consumption of power in March. Against this, the distribution company paid a paltry Rs 5 crore.
Last year, NTPC had served notices to both BRPL and BYPL for suspension of power supply over non-clearance of dues of about Rs 900 crore. However, the matter was resolved when BSES paid some dues, committing to pay rest in installments.