Power discoms BSES Yamuna and Rajdhani may face the heat of Delhi Electricity Regulatory Commission (DERC) over a list of violations, proceedings for which will be held shortly. Sources said some of the violations could result in penalties when tariffs are announced by the regulatory watchdog. However, this will depend on the outcome of the proceedings as the power companies will strongly resist imposing of penalties or action against them.
Last week, DERC announced the dates for public hearing on tariff announcement for 2015-16. Sources said that the final revenue gaps, as per the commission’s findings, for all three power companies could amount to a zero tariff hike due to penalties being considering to be imposed on the discoms. At least 12 violations have been noted by DERC against the BSES discoms.
DERC sources said they are trying to finish the proceedings by the time the tariff order is announced so that benefits could be passed on to consumers.
The violations were intimated to the BSES discoms by DERC via a letter dated March 30 where the latter were asked to give explanations so proceedings could be initiated. The violations included renewing PPAs from three plants without DERC’s approval, receipt of cash payments from consumers exceeding Rs 4,000, delay in implementing GIS mapping and capitalization, non-implementation of CAPEX schemes, delay in refund of consumer contributions, rotation of auditors and non-compliance of directions for renewable purchase obligations.
The regulator also raised the issue of discrepancies in cash flow between April 1, 2014 and February 28, 2015. “The BSES discoms have given a preliminary reply to the issues raised by DERC and the hearing will begin soon,” said sources.
The commission had also issued a showcause notice on the BSES discoms over a year ago for non-payment and non-maintenance of letter of credit leading to regulation of supply from gencos like NHPC and SJVNL to Delhi. The discoms have maintained that non-payment of dues to central and state utilities “is in consequence of an absence of a cost reflective tariff in past tariff orders.” The proceedings have also been challenged in Supreme Court by the BSES firms.
“NHPC, DTL and SJVN approached us saying they were not being paid by the BSES discoms and were forced to regulate supply. We sent the discoms a notice asking why action should not be initiated against them for not being able to maintain power supply in Delhi, which could lead to blackouts,” said DERC sources. The commission has decided to hold proceedings on this issue as it is being heard in the SC, where the judgment is reserved.
