BSES writes to DERC for help
With dues running up to thousands of crores of rupees, Reliance Infra-backed BSES discoms seem to have no option but to approach the city’s power regulator for help. On Monday, BSES wrote to the Delhi Electricity Regulatory Commission (DERC) seeking a fresh liquidation plan to resolve its regulatory assets worth Rs. 16,000 crore.
In a letter to DERC Chairman Krishna Saini, BSES said that the company’s revenue gap had increased over the years due to absence of a cost reflective tariff. It further stated that the total approved and undisputed revenue gap of its discoms BSES Rajdhani (BRPL) and BSES Yamuna (BYPL) amounts to over Rs. 16,000 crore as against its total overdues of about Rs. 12,000 crore to various entities, including the NTPC.
Bridging revenue gap
The discom asked the regulator to provide a “concrete and credible” amortisation plan so that the company can bridge the revenue gap. “Once a clear plan for amortisation of Rs. 16,000 crore is provided by DERC, it will facilitate in arranging suitable loans with the support of the Delhi government,” the letter written by BSES director Gopal K. Saxena read. The two discoms supply power to around 70 per cent of Delhi. It also urged the DERC to put in place a cost reflective tariff structure for financial year 2016-17 and allow complete pass through of any variation in power purchase cost by way of an appropriate power purchase adjustment cost.
Last week, NTPC had threatened to snap power supply to BSES if they failed to clear the dues of Rs. 1,300 crore by midnight on May 9. However, following intervention by the DERC and the Delhi government, NTPC agreed to give some more time to BSES to pay the amount. BSES has to pay around Rs. 4,000 crore to the Delhi government-run entity Delhi Transco Limited and another Rs. 4000 crore to its generation companies (IPGCL and PPCL).
As per official figures, around 80-90 per cent of the total revenue of discoms goes into purchasing power from the Centre and State government-owned entities.
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