NTPC threatens cutting off Delhi’s power supply

A BSES spokesperson said the two discoms are under huge financial stress due to non-liquidation of regulatory assets which are over Rs 16,000 crore as on March 2016. As compared to this, total overdues payable by BYPL to APCPL (a Joint Venture of NTPC, Delhi government and Haryana) is around Rs 239 crore, and this power is already being 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 BSES spokesperson said.

He added the payment of dues to power utilities by BSES discoms is sub judice in the Supreme Court and the judgement in the matter is reserved since February 2015. “We are awaiting the Supreme Court judgement, which will clear the path for recovery or liquidation of regulatory assets. Consumers will continue to get reliable power supply,” he said.

NTPC is the major supplier of power to the National Capital Territory (NCT) of Delhi which has a total allocation of 3,930 Mw from NTPC including 693 Mw from APCPL Jhajjar . Of this allocation, more than 2,000 Mw is allocated to the two BSES Discoms. NTPC supplies electricity worth around Rs 300 Crore to the BSES discoms every month.

As per the terms of the Power Purchase Agreement (PPA) between NTPC and BSES discoms, the payments of energy bills are to be made within a calendar month. NTPC, however, alleges the two discoms (particularly BYPL) are not making these payments as per the agreed provisions of the Power Purchase Agreement.

“It may be recalled that for 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 financial year, NTPC had kept this regulation notice in abeyance. However, despite a lapse of almost 10 months, there is an outstanding amount of Rs 239 crore overdue for payment from BYPL,” NTPC said.

The company claims that fuel alone accounts for around 70 per cent of its generation cost and that has already been paid to fuel suppliers like Coal India (CIL). NTPC had issued a similar threat in May last year saying it would have to suspend supplies for the BSES discoms if they fail to cough up Rs 1,300 dues. The generator had then issued notices to the discoms on non-payment of dues.

Source – economictimes.in