Govt can’t cancel discom licences, says tribunal

  • Bhadra Sinha, Hindustan Times, New Delhi
  • Updated: Feb 06, 2014 10:58 IST

The Appellate Tribunal for Electricity on Wednesday restrained the Delhi Electricity Regulatory Commission (DERC) from cancelling the licences of power discoms, BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd.

The order comes a day after the Delhi government launched an all-out offensive against the discoms, saying it was ready to take over power distribution.

The tribunal, comprising justice MK Vinayagam and Rakesh Nath (technical member), however, directed discoms to appear before the DERC on Thursday.

Chief minister Arvind Kejriwal, meanwhile, continued to hold informal meetings with a number of power distribution companies.

“If the people of Delhi suffer due to power blackouts, our government will do everything possible,” said urban development minister Manish Sisodia.

The Delhi government had written to the DERC on February 3, requesting the regulator to suspend the discoms’ licences. The DERC subsequently issued notices against the discoms on February 4, asking them to appear before it on February 6.

A day before they were scheduled to appear, BSES Rajdhani and BSES Yamuna Power Ltd filed an application before the tribunal seeking a restraint order. The tribunal is hearing the companies’ plea against the DERC’s 2013 tariff fixation order. The commission had raised the tariff by 8 per cent, while the companies wanted it enhanced by 20 per cent.

The DERC also served notice to the two BSES discoms on Wednesday, asking them about their financial condition.

With HTC inputs

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