Clear dues or we cut power supply: NTPC

NTPC supplies 2,051 MW of power to the two companies — this amounts to more than half of their total distribution amount. The BRPL supplies power to South and West Delhi while BYPL caters to East and Central Delhi.

A BSES spokesperson said that the companies have taken up the matter with NTPC and are working towards speedy resolution.

“BSES Delhi is in discussion with NTPC and bankers for resolution of the issue. BSES stands committed to its 28 lakh consumers and will make all efforts to ensure that no inconvenience is caused to our customers,” the spokesperson said.

An official of NTPC said: “Both companies have not cleared dues for the energy supplied during the month of July 2011. Out of total billing of Rs 814 crore,NTPC could realise only Rs 334 crore through letter of credit. Further,NTPC has supplied Rs 425 crore worth of electricity in the month of August 2011. The total outstanding amounts to more than Rs 900 crore.”

The NTPC does not have any back-up guarantee against default in payment by BRPL and BYPL. “In spite of follow-up at the highest level of BRPL and BYPL,both companies have refused to renew and maintain letter of credit (LC) which is a pre requisite for supply of electricity to these companies. Unless the issue is settled on a war-footing,licensed areas of BRPL and BYPL will see huge power cuts with effect from September 7,“ the official warned.

According to the official,the NTPC,as per terms of the power purchase agreement in the event of non-maintenance of LC,will serve a notice of 90 days on BRPL/ BYPL to remedy the default during which period power supply will remain suspended. In the event of BRPL and BYPL not being able to remedy the default within that time,NTPC will then have the right to terminate the PPA.

Power officials said the delay in renewing the LC by the two discoms is also because tariff in Delhi has not seen any significant increase in the last five-six years despite the companies pointing to a substantial revenue gap.