New Delhi: The AAP government of Arvind Kejriwal in a letter to Delhi Electricity Regulatory Commission (DERC) has asked for the suspension of the licence of BSES if it cuts power supply in the national capital. If the BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) stop a substantial part of the power supply to Delhiites beyond February 10 then the DERC may not have an alternative, but to suspend their licences immediately, as a first step, under paragraph 13 of the terms and conditions of their distribution licences.
The power companies had on Friday increased the surcharge, thereby increasing the power tariff. BYPL, BRPL and North Delhi Power Limited (NDPL) have increased surcharge by 8, 6 and 7 per cent respectively.
BSES sources said bank holding back funds was leading to a payment problem after NTCP, which supplies over 50 per cent of power to the national capital, rejected Delhi government's plea to continue power supply to BYPL. If the crisis continues residents of East Delhi and Central Delhi may face eight to 10 hours of power cuts in February.
Reliance Infra-backed power distribution company BYPL informed the Delhi government that the company was facing serious fund crunch to buy electricity. BYPL had sought immediate intervention of Delhi government in helping it overcome the situation and urged it to take up the issue urgently with NTPC, NHPC, Ministry of Power and Ministry of Finance.
Full text of the letter:
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
(DEPARTMENT OF POWER)
DELHI SECRETARIAT, 8TH LEVEL, B-WING
NEW DELHI - 110002
No.F.11(101)/2007/Power/Pt./
Dated : 03.02.2014
To
The Chairman,
Delhi Electricity Regulatory Commission,
Viniyamak Bhawan, C-Block, Shivalik,
Malviya Nagar,
New Delhi - 17
Sub.: Alleged paucity of funds with the DISCOMs and their likely failure to supply power to consumers for long hours - reg.
Sir,
It is seen that the BSES Discoms (BRPL & BYPL) at Delhi are alleging that they do not have adequate funds because of which they have been unable to pay NTPC for purchase of power. NTPC, which is a major supplier of power to Discoms, is maintaining that it shall not be able to supply power beyond 10.02.2014 unless payment for the purchase of power is forthcoming from these DISCOMs. In this regard, it may be mentioned : -
1. That under the Electricity Act, 2003 it is the duty of DERC to take care of the financials of the Discoms by providing adequate tariff (section 86 of the Electricity Act, 2003). It is presumed, the DERC has done so.
2. That the DERC has issued licenses to the DISCOMs at Delhi for distribution of electricity.
3. That the stand of Discoms that due to their financial difficulties, they will be unable to supply power to consumers of Delhi for long hours in a day, calls for revocation of their licences by DERC under section 19(d) of the Electricity Act, 2003.
This is a most serious matter. It is requested that it may definitely be found out from the two Discoms in the next two or three days as to whether they are going to stop a substantial part of the supply of power to the consumers of Delhi beyond 10th February, 2014. In case, these Discoms continue with their stand, the DERC may not have an alternative but to suspend their licenses immediately, as a first step, under para 13 of the terms and conditions of their distribution licences. Extensive blackouts in the capital city of the country due to financial difficulties of the these two Discoms is not acceptable. In the event suspension of licences becomes necessary in the near future, suitable officers will have to be appointed as Administrative Officers of BSES Discoms. It is requested that officers who could be appointed as Administrative Officers of DISCOMs may be immediately identified in consultation with the Chief Secretary, so that if need be, immediate action is possible and the consumers and Government of Delhi are not caught napping. The Hon'ble Chief Minister, Delhi has already issued the necessary instructions to the Chief Secretary. DERC may immediately take these steps or work out any other alternate suitable mechanism to address the situation.
Some subsidy amounts are due to the DISCOMs from the government which shall be cleared by February 15, 2014. In any case, the amounts shall be adjusted against the receivables of IPGCL/PPCL and DTL from these two DISCOMs.
Yours faithfully,
(Puneet K. Goel)
Secretary (Power)
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