Default discoms get a major shock

Delhiites may be in for a complete blackout with the Delhi Electricity Regulatory Commission (DERC) issuing show cause notice to BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL) for suspension of their licences.

Delhiites may be in for a complete blackout with the Delhi Electricity Regulatory Commission (DERC) issuing show cause notice to BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL) for suspension of their licences.

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Many parts of the city, including south, east and west, get power from these two distribution companies. According to sources, they owe Rs 3,000 crore to all transmission and generation companies.

“BRPL had written to DERC expressing their inability to clear the outstanding dues citing fund crisis as the increase in tariff has not really helped them. DERC then took cognizance of that and asked the power department’s views who said that they have been defaulting for quite some time,” said a senior power department official.

“If these companies decide to curtail power supply to the distribution companies it can lead to widespread disruption of power supply to the consumers in Delhi,” said a senior official.

“We have issued them a show cause notice asking them as to why their license for operation should not be suspended. We have given them seven days time to revert,” said PD Sudhakar, chairman, DERC.

“We had been getting complaints from companies stating that these two distribution companies have not paid their dues. We have asked them why they are not able to fulfill the requirement for licence. Once we receive their reply, we will decide on the future course of action,” he added.

The commission has also asked as to why an administrator should not be appointed to discharge the function of the two distribution companies.

Officials said that the commission had received a reference from the Delhi government that in spite of their efforts and even after issuing repeated warnings BRPL and BYPL have not been able to resolve the issue of outstanding dues to various generation and transmission companies.