Finds discrepancies in BYPL and BRPL revenue records
The Delhi Electricity Regulatory Commission has refused to accept the power distribution company BSES' audited monthly report between April and December 2011 on the ground that it has found discrepancies in records. The Commission has also found that assertions made by the company about its poor financial condition are not accurate.
Asking the subsidiaries of BSES -- BYPL and BRPL -- to make a fresh submission, the regulator has ticked off the companies by pointing out that their gaps in revenue collection indicated during the first seven months of the year  could have been eliminated if collection efficiency had been near 99.5 per cent.
The discoms were asked to submit their monthly revenue generation and expenditure since April 2011 by the DERC after slapping them with a show cause notice asking why their licenses should not be suspended for not paying off their dues.
“The Commission observed from the information provided by BRPL and BYPL that in the case of BRPL revenue collection during April and May 2011 was as low as 82.36 per cent and 78.44 per cent respectively . In April, 2011 revenue collection was only Rs.175.42 crore which is about 40 per cent of the average revenue collected in the other months of the financial year 2011-12. The Commission further observed that the above and other anomalies need to be examined and explained by the concerned distribution utilities,” the Commission has noted in its order.
The Commission has also noticed that there are “prima-facie unexplained discrepancies in the information relating to power purchase by both BRPL and BYPL”.
In response to the discoms' assertions that that a non-cost reflective tariff has left them unable to pay off their transmission and generation dues, the Commission has said: “... the gaps in revenue collection indicated during the first seven months of the year in case of both the utilities could have been eliminated if collection efficiency had been near 99.5 per cent. The above, coupled with other indicators such as large net cash surplus in December, 2011 (Rs.158.40 crore in case of BRPL and Rs.164.72 crore in case of BYPL), appear to indicate that revenue realised by BRPL and BYPL in the current months is sufficient to liquidate the current outstanding dues from September 2011 onwards in respect of generation and transmission utilities.”
The Commission has also asked the companies to make payment of dues to the power generation and transmission agencies so that there is no threat of discontinuance of power supply to the distribution utilities by these agencies. “As a first step, the Commission directs BRPL and BYPL to liquidate the current outstanding dues from September 2011 onwards of all their power suppliers and transmission utilities latest by February 1, failing which the Commission shall initiate appropriate proceedings against them for non-performance of their obligations under the distribution licences granted to them,” the order states.
The distribution companies have also been directed to liquidate the accumulated dues of the power generation and transmission agencies once the IDBI loan is sanctioned.
The two power companies have approached the Delhi Government for a financial bailout after they were served a notice by the DERC and claimed that they did not have enough money to even secure a loan from the IDBI bank.The Delhi Government after refusing to provide a loan in December agreed to infuse a fresh equity amount of Rs.500 crore into the company.
Subsidiaries of BSES asked to make fresh submission Delhi Government agrees to infuse a fresh equity amount of Rs.500 crore into the company
Subsidiaries of BSES asked to make fresh submission
Delhi Government agrees to infuse a fresh equity amount of Rs.500 crore into the company