NTPC’s Ultimatum to BSES: Pay or No Power Supplies From May 10th

NTPC’s Ultimatum to BSES: Pay or No Power Supplies From May 10th

Persistent payment delays by BSES DISCOMs in Delhi, BSES Rajdhani Power Ltd. (BRPL) & BSES Yamuna Power Ltd to the state-owned NTPC Ltd and India’s largest power producing company, may plunge India’s capital state of Delhi into darkness after May 9th.

As per NTPC, the outstanding payments by Delhi BSES Discoms to the power producer have touched Rs 1300 crore. Under the circumstances, NTPC said that it was left with no other option but to serve the notice for regulation of power on the BSES DISCOMs

“The payments by the BSES DISCOMs had become irregular for quite sometime. The matter was brought before the Hon’ble Supreme Court of India, who in their judgement dated 26.03.2014 directed the BSES DISCOMs to ensure payments of all current energy bills w.e.f. 01.01.2014. However, despite clear directions of the Hon’ble Supreme Court, the dues continued. Today the outstanding amounts are close to  Rs. 1300 Crs. (Rs. 892.30 Cr. & Rs. 402.93 Cr. respectively),” NTPC said in a statement on May 4th.

Under the circumstances NTPC said that it was left with no other option but to serve the notice for regulation of power on the BSES DISCOMs.

“A notice for regulation has been served on the BRPL & BYPL for regulation of power supply w.e.f. 00:00 hrs. of 10.05.2016 for a total quantum of 2027 MW,” NTPC said.NTPC has been supplying power to the BSES DISCOMs in Delhi, BSES Rajdhani Power Ltd. (BRPL) & BSES Yamuna Power Ltd. since unbundling and privatisation of DVB.

BSES, however, said in a statement that it is under huge financial stress due to non-liquidation of regulatory assets estimated to be over Rs 16,000 crore as of March 31, 2016. Compared to this, dues payable by BSES to NTPC is around Rs 1,300 crore.

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The power allocated to these DISCOMs from various NTPC power stations is 2027 MW (1349 MW & 678 MW respectively) & average monthly energy bill is presently of the order of Rs. 390 Cr. (Rs. 260 Crs. & Rs. 130 Crs. respectively).

NTPC said that it has to pay its fuel suppliers in advance which constitute about 75%-80% of its monthly energy bills. “If the above situation continues, NTPC stations may be facing outages on account of shortage of fuel,” the company said.

Anupama Airy
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Anupama Airy

Founder and Editor at EnergyInfraPost
Independent Journalist and Energy Expert.​ (Worked with leading mainline financial and national daily for 23 years.​)​ Also, Guest Contributor with busines​sinsider.in
Currently, Writing a Book for Penguin India Titled Greased Pole:How Politics and Lobbying Stifled India’s Energy Dreams. The author can be reached on anupama.airy@gmail.com (9810661825)​
Anupama Airy
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