Clear dues or face regulated power supply, NTPC tells BSES

Siddhartha P. Saikia New Delhi | Updated on March 13, 2018

NTPC says it is left with no other option than to regulate supplies.

Arup Roy

Public sector firm would regulate supplies if bills not cleared

In another blow to BSES discoms in the Capital, NTPC on Tuesday said there has always been a payment issue with the utility. The power producer would regulate nearly 2,000 MW of supplies from February 11 if BSES fails to clear dues. Nearly 32 lakh customers spread across southern, eastern, central and western parts of Delhi may face power cuts.

“This is not the first notice on BSES. They have been constantly defaulting in their payment security mechanism and this time it is the outstanding dues also,” said Arup Roy Choudhury, Chairman and Managing Director of NTPC.

Interestingly, another private discom in the capital -- Tata Power Delhi Distribution Ltd (TPDDL) – has been making payments on time.

“Tata Power has been paying their bills in time, we never had a problem them. With BSES this is the third time we are facing problems,” the Chairman told mediapersons.

Last Saturday, NTPC issued notices to BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL) threatening to regulate the electricity supply from February 11. NTPC in its notice said the discoms have not been able to reinstate the payment security mechanism (commonly known as letter of credit or LC) within seven days in line with the norms in the power purchase agreement.

The LC was enchased on January 31 after the discom failed to clear its dues to the power generating company. For BRPL, the shortfall in LC with effect from February 1 is Rs 271.61 crore, while in case of BYPL, the LC amount is Rs 168.29 crore and also pending payments of Rs 96.07 crore for January 2014.

NTPC said it is left with no other option than to regulate supplies. This is because the power producer pays Coal India in advance for fuel. "For energy supplied in December, we paid Coal India in October and November and 75-80 per cent of the electricity tariff is cost of coal," Choudhury explained.

Moreover, unlike other States, Delhi does not have a provision for Third Party Protection Audit (TPA). The discoms in other states are saved by the State Governments through the TPAs, under which the utility gets payments under the State allocation.

Meanwhile, Minister of State for Power (Independent Charge), Jyotiraditya M. Scindia said payments of NTPC should be cleared at the earliest.

“This issue is between the Delhi Electricity Regulatory Commission, the discoms in Delhi and the State Government. What we certainly do hope is that the dues rightfully in the case of NTPC should be paid as soon as possible,” Scindia told mediapersons.

On Monday, the Delhi Government asked the Delhi Electricity Regulatory Commission to ensure that electricity supply is not interrupted in the national Capital. It has also asked the regulator to cancel the discoms’ licence if they fail to provide electricity to consumers.


Published on February 04, 2014

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