Delhiites should not be subjected to a power tariff hike or load-shedding due to liquidation of regulatory assets or non-payment of bills by power distribution companies to generating companies respectively, the Appellate Tribunal for Electricity said on Tuesday. It was hearing a plea by power distributors BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd.
The Tribunal said current payment by power distribution companies to the generating and transmission companies must be “ensured at all cost to avoid any possibility of reduction of power availability to Delhi”.
“Load-shedding in the national Capital due to regulation of power supply by the generating companies due to default in payment is unacceptable particularly when consumers are paying their bills at the tariff determined by the Delhi Electricity Regulatory Commission. Thus, consumers cannot be made to suffer for no fault of theirs,” said the Tribunal, which was hearing the pleas of BSES Yamuna and BSES Rajdhani challenging last year’s order of DERC determining retail supply tariff for the financial year 2013-14.
It directed the DERC to pursue with the Delhi Government the issue of financial restructuring of the distribution licensees and examine why the licensees were not paying current bills of the power generating and transmission companies.
“The Commission shall again take up with the Delhi Government for early decision on the financial restructuring of the distribution licensees to minimise the burden on consumers on account of increase in retail supply tariff due to liquidation of the regulatory assets,” the Tribunal’s Bench comprising chairperson Justice M Karpaga Vinayagam and member Rakesh Nath said.
It directed DERC to prepare a roadmap for liquidation of regulatory assets after the companies said DERC has failed to give any plan for recovery of regulatory assets and the 8 per cent surcharge allowed is insufficient to recover the accumulated shortfall.
They said the transmission companies have threatened them for regulation of power supply on account of non-payment of outstanding dues.
The distribution companies said they feared restriction in supply from the transmission companies resulting in deprivation of power supply to the public and threat to grid security, the consequences of which may be public disorder and unrest.
“The DERC has to examine why the applicants/appellants are not paying the current bills of the generating and transmission companies when DERC has provided for meeting the current expenses of the distribution licensees including the carrying cost and take further necessary action in the matter. The current payments have to be ensured at all cost to avoid any possibility of reduction of power availability to Delhi,” the Tribunal said.
