BSES approaches DERC for amortisation of regulatory assets

This, the company said will help it raise finances for paying its dues to NTPC

With NTPC asking Reliance Infrastructure-promoted BSES to clear power purchase dues, the latter has approached the Delhi Electricity Regulatory Commission (DERC) for a road map for amortisation of its regulatory assets.

“We have reiterated on several occasions that once a clear plan for amortisation of even the approved and undisputed regulatory assets of Rs 16,000 crore is provided by DERC, it will facilitate in arranging suitable loans with the support of the government of Delhi so that the entire dues can be discharged and the sector in Delhi restored to a healthy situation free from the threats of regulation, etc,” said the letter by BSES to the chairman of DERC.

This, the company said, could help raise finances for paying the dues to NTPC. BSES has two power distribution utilities operating in Delhi — BSES Rajdhani Power (BRPL) and BSES Yamuna Power (BYPL). NTPC had issued notice to BRPL and BYPL last week for non-payment of dues totalling Rs 1,300 crore. The company also threatened to nip the power supply if dues are not paid by May 10.

BSES in its letter dated May 9 has also asked DERC to allow tariff hike as soon as possible. “It may not be out of place to mention that due to lack of a cost-reflective tariff, these regulatory assets have been growing year-on-year. We respectfully pray to the Commission to determine the cost-reflective tariff for FY17 and allow complete pass-through of any variation in power purchase cost by way of an appropriate PPAC (power purchase adjustment charges) formula,” the letter noted.