Allow BSES to exit agreement, power regulator writes to Centre

On July 1, the CERC issued an order stating that the discoms are eligible to terminate PPAs after 25 years of operations, thereby allowing BSES Yamuna Power Ltd to exit the contract.

The Delhi Electricity Regulatory Commission (DERC) has written to the Union power ministry asking that share of electricity allocated to the Capital from the Dadri-I thermal power plant be given to other states.

In its letter to the power ministry, the Delhi electricity regulator said discontinuing the purchase agreement will lower the burden of fixed charges. (HT photo)

According to senior power department officials, despite the expiry of the agreement to buy power from the National Thermal Power Corporation (NTPC), which owns the Dadri plant, BSES discoms continue to pay around ₹35 crore per month as fixed charges to NTPC.

They explained that since NTPC refused to discontinue the power purchase agreement (PPA) with the BSES discoms, the power companies approached the Central Electricity Regulatory Commission (CERC), which ruled in their favour.

On July 1, the CERC issued an order stating that the discoms are eligible to terminate PPAs after 25 years of operations, thereby allowing BSES Yamuna Power Ltd to exit the contract.

The 25 years of the agreement ended in November 2020.

In its letter to the power ministry, the Delhi electricity regulator said discontinuing the purchase agreement will lower the burden of fixed charges, which have to be paid even without any consumption, on the distribution companies (discoms) and consumers.

“You are once again requested to permanently reallocate on urgent basis entire Delhi’s share of Dadri-I Generating Station of NTPC Ltd to other needy states with effect from December 1, 2020, to avoid the burden of fixed.