Supreme Court halts potential blackout in Delhi

Asks NTPC not to disconnet power supply till March 26; directs BSES to pay Rs 50 cr in 2 weeks

The Supreme Court today directed NTPC not to discontinue supply of electricity to Delhi till March 25, averting a possible blackout in Delhi next week.

SC, on March 25, will take up all the pending cases in disputes between the DERC, electricity appellate tribunal, the state government and the two Anil Ambani companies which distribute power in the capital.

The two discoms, BRPL and BYPL, have been asked to pay NTPC Rs 50 crore within two weeks against the dues demanded by it. NTPC had earlier given an ultimatum to the discoms that it would cut off power by Monday midnight if dues are not settled. It was in the shadow of that threat that the companies moved urgent writ petitions.

The bench consisting of Justice S S Nijjar and Justice A K Sikri observed at the end of the long hearing that “we have to look after the people of Delhi; the consumers should not suffer.” They told NTPC counsel that by cutting electricity it will not get the money. “This is not the right attitude to take.”

NTPC submitted that the companies owed it Rs 96 crore and it is suffering because of that. There is no letter of credit also, it pleaded.

Counsel for the discoms, Mukul Rohtagi, responded by saying that “we are not running away; we are half government (51:49) and NTPC is full government.”

Discom counsel submitted that the companies had made huge investments and they expected return from the business. Rohatgi told the court that the two companies have still not been paid dues worth Rs.15,000 crore as directed by the DERC. This, he said, has caused a huge burden on the companies as they could not pass it on to the consumers.

Addressing the discoms, the judges remarked: “You are in business; if it is not profitable, you must make other arrangements.” They said that unless all the issues raised in several petitions before them are decided, a final order cannot be passed. Therefore, they listed the cases for final hearing on March 25.

In a short intervention, DERC counsel said that the figures presented by the discoms showed anomalies and since they went on appeal, the regulator could not do anything. Discoms blamed the regulator for not fixing the costs.