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Home News Power Sector News Supreme Court orders BSES Delhi to clear NTPC dues

Supreme Court orders BSES Delhi to clear NTPC dues

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Supreme courtThe Supreme Court on 26-03-2014 asked the National Thermal Power Corporation (NTPC) not to cut power supply to Reliance Group-owned discoms over non-payment of dues. The court also asked the BSES to pay the dues to generating and transmitting companies, which are pending since January 1, 2014.

In an escalating battle over who should shoulder the rising cost of power in the national capital, while the distribution companies have said they cannot pay the money they owe because the electricity tariffs are kept low and they suffer revenue shortfalls, the state-run NTPC had threatened to snap power supply in February over the outstanding dues.

NTPC said it also required to meet the cost of coal and other expenditure to maintain power generation and supply.

On Wednesday, a bench led by Justice S S Nijjar asked the NTPC to continue power supply until a proper solution to the problem could be arrived at.

The court added that Delhi Electricity Regulatory Commission (DERC) will send a questionnaire to the BSES and the discoms will furnish the details of recovery dues.

Subsequently, the DERC shall come up with a roadmap of repayment and it will also inform the discoms regarding various elements of tariff adjustment.

The court said it will also seek information from the DERC and BSES on how to resolve the revenue shortfall, and asked the commission to ensure there is no unnecessary delay in paying the dues.

In an official statement, the BSES welcomed the directions of the court, asking the DERC "to present a composite roadmap within 30 days, for realisation of our long accumulated and substantial under-recoveries, and payment of arrears to generating companies".

It stated that owing to non-cost reflective tariff regime in Delhi, more than Rs 19,000 crore had been accumulated as dues to BSES, whereas BSES owed all generating and transmission companies around Rs 6,000 crore.

The NTPC had in February first week issued notices to BSES Rajdhani and BSES Yamuna on the issue of payment of security mechanism and non-payment of dues.

Source - Financial Express


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