NTPC may snap power supply to BYPL for delay in dues payment

State-owned power giant NTPC is weighing the option of snapping power supplies to BSES Yamuna Power Ltd (BYPL), which distributes electricity in Delhi, for delay in payment of its dues.
The continued non-payments by Delhi discoms would make it very difficult for NTPC to keep maintaining its reliable supplies in the ensuing peak summer season where the demand of Delhi is supposed peak to at 6600 MW as per estimates, a source said.
The source said that in case overdue payments are not made immediately, the NTPC may be constrained to consider all options, including regulation (snapping) of power supply, in the coming days.

NTPC is the major supplier of power to national capital region of Delhi, which has a total allocation of 3930 MW from NTPC including 693 MW from APCPL Jhajjar (a Joint Venture of NTPC, the NCT of Delhi and Haryana).
Out of 3930 MW over 2000 MW is allocated to the two BSES Discoms, BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL) to whom NTPC supplies electricity worth about Rs 300 crore every month.
As per the terms of the PPA between NTPC and these discoms, payments of these energy bills are to be made within the calendar month.

However the discoms (particularly BYPL) are not making the payments as per the agreed provisions, the source said.

Earlier in a similar situation, NTPC had issued a notice for regulation of power to these Discoms in May 2016.
Subsequently, after discussions with the Discoms and assurance of liquidation of outstanding dues by this fiscal, NTPC had kept this regulation notice in abeyance.
However, the source said that despite a lapse of almost 10 months, there is an outstanding amount of Rs 239 crore overdue for payment from BYPL.
About 70 per cent of NTPC's energy cost is on account of fuel cost, which have already been paid upfront to the fuel suppliers by the company.

When contacted, a company spokesperson said: "BSES is under huge financial stress due to non liquidation of regulatory assets, which are over Rs 16,000 crore as on March 31, 2016. As compared to this, total overdues payable by BSES Yamuna Power Limited (BYPL) to APCPL is around Rs 239 crore only. This power is already regulated for the last few months.
"BSES discoms are in regular touch with APCPL to get the regulation lifted, as also making concerted efforts to address the situation and clear pending dues in a just and equitable manner."
The payment of dues to power utilities by BSES discoms is sub judice in the Supreme Court, he said, adding that the judgement in the matter is reserved since February 2015. "We are awaiting the Supreme Court judgement, which will clear the path for recovery/liquidation of regulatory assets."

He said the consumers will continue to get reliable power supply.