Cancel discom permits if power is cut: Delhi to DERC

DERC can revoke licence if discom is not financially sound; BSES says it has given Rs 35,000 cr to Delhi govt as savings

The Delhi government on Monday advised the city’s power regulator, the Delhi Electricity Regulatory Commission (DERC), to cancel licences of the Reliance Infrastructure-owned private power distribution companies, if it continues to threaten with blackouts.

“The stand of discoms, that due to their financial difficulties they will be unable to supply power to consumers for long hours in a day, calls for revocation of their licences by DERC under Section 19(d) of the Electricity Act, 2003,” Delhi Power Secretary Puneet Goel told DERC Chairman P D Sudhakar in a letter.

Section 19(d) says the regulator might revoke the licence if a probe establishes “the financial position of the licencee is such that he is unable fully and efficiently to discharge the duties and obligations imposed on him by his licence”.

Responding to the letter, a BSES spokesperson said the company was not aware of the development.

Calling the issue “a most serious matter”, Goel requested DERC to find out within three days whether the discoms are going to stop a substantial part of the power supply to consumers beyond February 10. “In case discoms continue with their stand, DERC may not have an alternative but to suspend licences immediately ...,” the letter, released to the media by the state government, read.

Goel also stated that in case licence suspension becomes necessary in near future, suitable administrative officers of BSES discoms will have to be appointed.

He also requested DERC to immediately identify administrative officers of discoms in consultation with Chief Secretary S K Srivastava “so that immediate action is possible and the consumers and the Delhi government are not caught napping”.

Goel urged the DERC chairman to take immediate steps or work out any other suitable mechanism to address the issue as Chief Minister Arvind Kejriwal has already issued necessary instructions to the chief secretary. BSES discoms – BSES Yamuna (BYPL) and BSES Rajdhani (BRPL) – are alleging they have been unable to pay power supplier NTPC Ltd for purchase of power due to inadequate funds. NTPC has threatened to cut off 2,000 Mw supply to BSES firms beyond February 10 unless the discoms pay up.

BSES discoms supply power to over 75 per cent of the city’s 3.4 million consumers in the eastern, central, southern and western regions.

The two firms source as much as 60 per cent of their power requirement from NTPC. Kejriwal had last month announced a tariff relief through 50 per cent subsidy in power bills for domestic consumers before launching a CAG audit of the discoms. The subsidy benefit was partially offset by DERC through a six-eight per cent hike in tariff approved last week.