BSES seeks amortisation of regulatory assets to clear dues

Tribune News Service

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New Delhi, May 9

With electricity supplier NTPC seeking clearance of its dues from the Reliance Infra-backed power distribution utility BSES, the latter has written to the Delhi Electricity Regulatory Commission (DERC) seeking amortisation of its “undisputed” regulatory assets totalling Rs 16,000 crore, which would help it clear its Rs 12,000-crore dues.

In the letter to the chairman DERC, written by the BSES chairman, he has said, “We have reiterated on several occasions that once a clear plan for amortisation of even the approved and undisputed regulatory assets of Rs 16,000 crore is provided by DERC, it will facilitate in arranging suitable loans with the support of the Government of NCT of Deihi so that the entire dues can be discharged and the sector in Delhi restored a healthy situation free from the threats of regulation, etc.”

NTPC last week had issued a notice to BRPL and BYPL over non-payment of dues. The company has threatened to nip power supply if dues are not paid by May 10.

In the letter written today, BSES has also asked DERC that tariff hike should also be allowed. 

“It may not be out of place to mention that due to lack of a cost reflective tariff, these regulatory assets have been growing year on year. We pray to the commission to determine cost reflective tariff for FY 16-17 and allow complete pass through of any variation in power purchase cost by way of an appropriate PPAC formula,” BSES said.

The total pending dues of BYPL are Rs 402.93 crore and those of BRPL, Rs 892.3 crore.