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Blaming regulatory assets of over Rs 16,000 crore for its unpaid dues, Reliance Infra-owned BSES power distribution companies have urged the electricity regulator to come out with a clear plan of amortisation to enable the firms to discharge the entire dues of nearly Rs 12,000 crore owed to power utilities.
The letter to the regulator, reviewed by FE, comes days after the state-run NTPC issued a notice to both firms, saying that the power supply would be interrupted if its dues worth Rs 1,300 crore wasn’t settled. NTPC supplies over 2,000 MW to both the discoms combined.
“Once a clear plan of amortization for even the approved and undisputed regulatory assets of over Rs 16,000 crore is provided by Delhi Electricity Regulatory Commission (DERC), it will facilitate in arranging suitable loans with the support of Delhi government so that the entire dues can be discharged,” Gopal Saxena, director, BSES said in the letter.
The discoms said that the regulator must determine cost-reflective tariff for FY 17 and also complete pass through of any variation in power purchase cost by way of an appropriate power purchase adjustment cost formula.
Blaming lack of cost-reflective tariff, the BSES said that the firms’ regulatory assets have grown from Rs 2,186 crore in FY 10 to Rs 8,156 crore in FY 14. The discoms in Delhi are saddled with unliquidated regulatory assets as the power tariff weren’t raised for the first few years after the private companies took over the Delhi Vidyut Board (DVB) in 2002. This has been further compounded by revenue gap in the approved tariff. Last year, Delhi government had refused to issue a ‘comfort letter’ to the state-run Power Finance Corp.
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