The two BSES distribution companies in the national capital have reached an amicable settlement with state-run generator NTPC on regulating of power to private discoms.
In a letter written to NTPC on Wednesday, a copy of which has been sourced by IANS, the BSES discoms said: "In view of the amicable settlement arrived at BRPL (BSES Rajdhani Power Ltd) and NTP, we understand that the Regulation Notice dated May 4, 2016, which was deferred by NTPC's communication dated May 9, 2016, stands withdrawn."
"Consequent to the Regulation Notice issued by NTPC, Delhi Electricity Regulatory Commission (DERC) had convened a meeting and directed the parties to amicably resolve and decide a payment schedule enabling NTPC to withdraw Regulation Notice," it said.
"Thereafter BRPL had proposed a payment schedule liquidating outstanding dues to NTPC till September 2016. During the meeting, NTPC informed DERC about the settlement reached regarding payment schedule and BRPL confirmed the same," the leter added.
The BSES discoms had written to the regulator last week that the money due to them is more than what they owe to NTPC.
The private discoms pointed out that since the undisputed regulatory assets due to them amounted Rs.16,000 crore, it will be more than enough to clear the power purchase dues of NTPC.
"As brought out in the meeting, the total approved and undisputed regulatory assets of BSES Discoms (distribution companies) amount to over Rs.16,000 crore, as against total overdues of about Rs.12,000 crore as on March 31, 2016," the letter said.
It also said that due to lack of a cost-reflective tariff, these assets have been growing -- from Rs.2,186 crore in 2009-10 to Rs.8,156 crore in 2013-14, which is more around Rs.5,970 crore.
It sought the watchdog's intervention to: "Provide a concrete and credible amortisation plan (principal and interest) for the admitted amount of regulatory asset of approximately Rs.16,000 crore, which will help BSES Discoms in raising finances."
It also requested tariffs that are cost reflective for the current fiscal.
"The above steps would help the BSES Discoms to discharge their payment obligations in a timely manner and allay any threat of regulation of power in future."
Source- Business standard