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An early resolution of the ongoing power crisis in the national capital seems unlikely, with the Delhi Electricity Regulatory Commission (DERC) toughening its stand and refusing a tariff hike for BSES distribution companies. The regulator will seek an early hearing on its appeal in the Supreme Court (SC) challenging an earlier order by the Appellate Tribunal for Electricity (APTEL) in favour of increasing rates.
The apex court had refused to vacate its earlier order that stayed the APTEL’s direction. The court also asked DERC to submit a reply on an application filed by the BSES counsel regarding the implementation of APTEL’s order to resolve an ongoing payment crisis.
“We will submit our reply before the matter is next heard on July 3 and seek an expeditious hearing of our appeal,” a senior DERC official said. A rate hike is crucial for the two discoms — BSES Yamuna and BSES Rajdhani — to pay state-owned generator NTPC Ltd Rs 700 crore of payment dues.
NTPC Chairman Arup Roy Choudhury had last week reaffirmed the company’s resolve to cut 2,000 Megawatt of supply to BSES discoms if the payments were not made by May 31. The discoms are currently engaged in hectic negotiations with a consortium of bankers for fresh loans to clear the dues.
The bankers are asking for cost-reflective tariffs to put an end to the yearly buildup of arrears by the end of the current fiscal and a clear road map for recovery of over Rs 22,000 crore of Regulatory Assets (RAs) — recognised but unrecovered revenue.
The banks are irked at the unfulfilled promise of liquidation of RAs by 2014-15 made by DERC to BSES discoms way back in 2011. It was also assumed that there would be no further building of arrears post 2012-13 as retail tariffs would be raised to the level of cost of supply. None of that has happened.
