2 days ago
BSES Discoms To Recover 28.5k Cr Dues
New Delhi: Delhi's two power distribution companies, BSES Yamuna and BSES Rajdhani, on Friday said they would recover power dues amounting to Rs 28,483 crore by March 31, 2028. The move may lead to the spiralling of electricity charges in the city.
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Days after Supreme Court allowed the discoms to liquidate the existing regulatory assets within a maximum of four years starting from April 1, 2024, Reliance Infrastructure Limited, which owns a 51.49% stake in BSES, a joint venture with Delhi govt, stated that the total dues of its two subsidiaries, BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL), amount to Rs 28,483 crore as of July 31.
"As directed in the judgment, the existing regulatory asset must be liquidated in a maximum of four years starting from April 1, 2024, taking Rule 23 (of Electricity Rules 2005) as the guiding principle.
Accordingly, the regulatory asset as approved by DERC (Delhi Electricity Regulatory Commission) shall be liquidated/recovered by March 31, 2028," Reliance Infra stated. Regulatory assets are costs incurred by a discom that are deferred on the balance sheet and allowed to be recovered from the customers later through approved rates or tariffs.
No immediate reaction was available from Delhi govt. BRPL and BYPL together cater to nearly two-thirds of Delhi and provide electricity to over 53 lakh houses in east, northeast, south, southwest and parts of west Delhi.
While Tata Power Delhi Distribution Limited (TPDDL) caters to north, northwest and parts of central Delhi, NDMC provides electricity in Lutyens' Delhi. Sources said TPDDL, too, has accumulated regulatory assets of nearly Rs 6,000 crore.
The apex court on Wednesday directed that the regulatory assets, including carrying costs to the tune of Rs 27,200.37 crore, be paid within three years to Delhi's three private discoms.
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Reliance Infra said its subsidiaries filed a writ petition and civil appeals in 2014 before Supreme Court, raising the issue of "non-cost reflective tariff, unlawful creation of regulatory asset and non-liquidation of regulatory asset". Referring to the order, Reliance Infra said the court had directed DERC to provide the "trajectory and roadmap" for the liquidation of the existing regulatory asset, which would include provisions for dealing with carrying costs.
It added that DERC must also undertake an intensive audit of the circumstances in which the discoms continued without recovery of assets.
Saurabh Gandhi, general secretary of United Residents of Delhi, said DERC earlier allowed the recovery of Rs 800 crore, which every consumer in Delhi had been paying at 8% on every bill as power purchase agreement cost for the past 13 years. Yet that amount remains outstanding, he added. "Imagine how much will have to be paid now," Gandhi said.
