DERC asks govt to examine ramifications of scrapping licenses

Delhi's power regulator DERC today asked AAP government to examine ramifications of possible cancellation of licenses of BSES discoms, particularly about their huge financial liabilities.
In a letter, the Delhi Electricity Regulatory Commission conveyed to the government that it examine various issues carefully including appointment of administrators in the discoms in the event of suspension of their licensees.
"A considered view has to be taken as to whether past liabilities of the discoms will stand transferred to the administrator/ state government and the manner in which personnel will be drawn for running the distribution system," the DERC said.
The DERC said it has increased the power tariff by nearly 70 per cent in the last four years to help the discoms finnancially.

"While considering the ARR (annual revenue requirement) for 2012-13, the Commission had ensured that the discoms are in surplus (except BSES Yamuna Power Ltd) and in 2013-14, all the discoms are in surplus."
On Monday, Delhi government had recommended to the DERC to revoke the licenses of BSES discoms if they resort to long outages in areas of their operation citing fund crunch to arrange power.

The NTPC had last week served notices of power supply suspension to BSES discoms and said electricity supplies will be snapped if they do not clear their dues by February 10. However, the Supreme Court today directed NTPC not to cut power supply to BSES till March 26.

BSES discoms had informed the government that they did not have money to buy power and the city may reel under long outages if funds are not provided to them.
In its letter, the DERC said the government has to be careful in dealing with the issue of appointing administrator and other matters so as to ensure that regular power supply is maintained to the consumers.