Tribunal clears way for power rate hike

NEW DELHI, Mar 11, 2014, DHNS:

Asks DERC to create road map to help discoms recover arrears

Delhiites may suffer another power tariff shocker as the Appellate Tribunal for Electricity (APTEL) has asked the Delhi Electricity Regulatory Commission (DERC) to take an early decision on getting the huge accumulated arrears owed to the discoms cleared.

The three discoms of Delhi – BSES Yamuna Pvt Ltd (BYPL), BSES Rajdhani Pvt Ltd (BRPL) and Tata Power Delhi Distribution Ltd (TPDDL) – had approached the APTEL a few months back complaining against fear of a prejudiced order from DERC against them.

Bank loans

After the hearing, the tribunal asked the DERC to create a road map for paying back the arrears of Rs 8,000 crore to the three discoms. This will give the discoms a chance to demand an enhanced power tariff to balance their accounts.

After the tribunal decision, the discoms will be able to get loan from banks to pay off their due to power generation companies (gencos) National Thermal Power Corporation (NTPC), Pragati Power Corporation Limited Delhi (PPCL), Indraprastha Gas Power Generation Company Limited (IPGCL) and Delhi Transco.

The NTPC had threatened to discontinue power supply to the Reliance Infra-backed discoms BYPL and BRPL is the fail to pay of the dues of RS 127 crore. 

The Supreme Court had asked the NTPC to not to cut the power supply till March 25 and asked the discoms to pay Rs 50 crore to the genco.

 “We welcome the order of APTEL directing DERC to take an early decision for liquidation of the huge accumulated arrears owed to the Delhi discoms. APTEL has clearly directed DERC to ensure sustainability of the business of the discoms,” said a BSES spokesperson.

Financial support 

APTEL has also recognised the need for financial support from the Government to ensure discoms recover their past dues, with minimum burden on consumers. 

DERC has already proposed last week a road map for payment of over Rs. 8,000 crore and interest thereon owed to the discoms, he added.

The subsidy on power tariff of 50 per cent on 0-200 and 201-400 units slab announced by former Delhi Chief Minister Arvind Kejriwal is also going to end on March 31.

It is understood that the DERC will allow the discoms for a hike in power tariffs next month.

with thanks : Deccan Herald : LINK