Reliance Infra-backed power distribution company BSES Rajdhani Power Ltd has sought Delhi Government's intervention in overcoming its "precarious financial" condition in absence of a "cost-reflective" electricity tariff in the national capital.
In a letter to Delhi's Power Secretary Punit Goyal, the company said it has been finding increasingly difficult to get bank loans due to delay in announcing a liquidation plan of existing regulatory assets and the new government's approach towards tariff.
BRPL supplies power to around 44 per cent consumers in the city and its poor financial condition may lead to power cuts in the areas of its operation.
"In absence of non-reflective tariffs, the already precarious financial condition of BSES is further worsening continuously, and this has placed insurmountable pressure on our ability to make payments to generating and transmission companies for power supplies," the letter said.
The company said it has a total revenue gap of Rs 5,205 crore upto 2012.
"In view of the non availability of cost reflective tariff for several years in the past, the cumulative shortfall in tariffs of BRPL up to 2012 has been recognised by Delhi Electricity Regulatory Commission in its tariff order in July 2013 at Rs 5205 crore," the letter said.
According to DERC figures, the three private discoms operating in the city have a revenue gap of whopping Rs 19,500 crore. Power experts said any move to cut tariff will adversely impact the operation of the discoms in the city.
"The recent media coverage reflecting the government's desire to reduce tariff, declaration of increase in power subsidies coupled with the delay in announcing the liquidation plan of existing regulatory assets by Delhi Electricity Regulatory Commission have been taken note of by our bank lenders, and they have indicated that they will not be in a position to extend any further accommodation in meeting debt servicing obligation," said the letter.
The discom was unhappy after Chief Minister Arvind Kejriwal, while announcing 50 per cent subsidy scheme, said that the amount payable to BSES discoms will be adjusted with their dues to government-run generating and transmission companies.