BSES account audit: Discoms file counter affidavit

Contesting the observations of power regulator Delhi Electricity Regulatory Commission that Reliance Infrastructure-backed discoms BSES Yamuna and Rajdhani did not show correct accounts in the audit reports submitted for last fiscal,the discoms on Tuesday filed a detailed affidavit.

Contesting the observations of power regulator Delhi Electricity Regulatory Commission (DERC) that Reliance Infrastructure-backed discoms BSES Yamuna and Rajdhani did not show correct accounts in the audit reports submitted for last fiscal,the discoms on Tuesday filed a detailed affidavit.

In the affidavit,the discoms maintained that they had followed the same methodology that was suggested by DERC in an order in 2003 to analyse the companies financial health. They also stated that following a hearing on January 20,a clarification was sent to the power regulator,which was not considered and another order was issued on January 25.

The DERC last month had asked the discoms to submit a detailed account of their monthly revenue generation and expenditure since April 2011 to keep a tab on their accounts. Following a detailed study of the audit report,the Commission noticed that there were prima-facie unexplained discrepancies in the information relating to power purchase by both BRPL and BYPL.

Sources said the discoms have argued that the increase in revenue generation does not mean that the companies have been making profits. The increase is because there was an increase in tariffs last year,but even while it has reduced the cost burden on the discoms,it has not removed the burden altogether, said a discom official.

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