Don’t act against discoms in haste: Tribunal to regulator

The ATE, which was hearing a case filed by the BSES discoms in 2013 seeking liquidation of their regulatory assets to recover past losses, has asked the DERC to not take any coercive action against the discoms during pendency of their interim application.
The DERC had asked the two BSES discoms to appear before the commission on Thursday and make their “submissions with regard to the government’s request for suspension of their licence through a letter dated 3.2.2014”.

An order issued by ATE chairperson Justice M Karpaga Vinayagam and Technical Member Rakesh Nath on Wednesday stated: “Having regard to the urgency of the matter, we deem it appropriate to direct the appellants (BRPL and BYPL) to appear before the Delhi commission on 6.2.2014 and make their submissions with regard to the letter of government and Delhi commission may continue to proceed with the matter hearing the parties concerned, but the commission is directed not to pass the final order in the above proceedings without leave of the tribunal during pendency of these IAs (interim applications).”

As per provisions of the 2003 Electricity Act, the ATE has jurisdiction to take up power-related disputes across the country. DERC chairperson P D Sudhakar said the tribunal is the “highest authority” on electricity related issues, “it is above this commission”.
The order was passed a day before the DERC hearing, after the appellant’s counsel submitted: “Even during pendency of above interim application before this tribunal, it is apprehended that Delhi commission may pass some orders which may be prejudicial to the appellant, and therefore, suitable directions may be given to the Delhi commission not to proceed with the said proceedings and pass final order in the matter relating to suspension of licence.”

Despite the pressure to revoke licences, Sudhakar said a judgment cannot be pronounced on the matter. “We are looking into the matter as per the provision of the 2003 Electricity Act. Hearings are being held, evidence and circumstances are being looked into. Nothing can be decided at this point,” he said.

The Delhi government on Monday had recommended the DERC to revoke licences of the two BSES discoms — BSES Rajdhani and BSES Yamuna — if they failed to clear their outstanding dues to NTPC by February 10 and resorted to long outages in the city.
State-run power generator NTPC had last week served notices of power supply suspension to the two discoms and said electricity supplies would be snapped if they do not clear their dues by February 10. BSES discoms, which supply power in nearly 70 per cent areas in the city, had informed that outstanding dues of BSES Yamuna had not been cleared for an alleged shortfall of money.

Meanwhile, the BSES said all outstanding dues with regard to BSES Rajdhani had been cleared, and there was “no current default in payments to NTPC”. However, the power regulation notice has been sent to the BRPL for want of a Letter of Credit (an advance payment security) by the NTPC.

“We have requested the NTPC to follow consistent practice of past 18 months and allow reinstatement of the LC in 30 days,” an official said.