Power distribution companies (discoms) catering to the Capital, sources privy to their condition said, were facing an aggravated financial crunch due to the reversal of power purchase adjustment charges (PPAC) by the Delhi Electricity Regulatory Commission (DERC) since November 2014.
Two major Delhi discoms were currently confronting a financial setback of over Rs. 1000 crore with the BSES facing a crunch of over Rs. 700 crore and the TPDDL over Rs. 330 crore.
The PPAC is a surcharge given to compensate the discoms for variations in market-driven fuel costs as well as additional costs on account of increase in coal and gas prices.
ADVERTISEMENT
In November 2014, a source said, the DERC provisionally granted BYPL seven per cent, BRPL 4.5 per cent and TPDDL 2.5 per cent before withdrawing the same within 24 hours. For the next quarter, the discoms had asked a PPAC of 18.91 per cent (BRPL), 24 per cent (BYPL) and 19 per cent (TPDDL).