This story is from May 5, 2016

NTPC may cut supply to BSES discoms

Issues Notices Over Dues
NTPC may cut supply to BSES discoms
New Delhi: As Delhi gears up for one of its hottest summers, the city is facing a potential power crisis.State-run NTPC has issued regulation notices to the two Reliance-backed discoms BSES Yamuna and BSES Rajdhani, that could stop supply of 2,027 MW power to the national capital from May 10. With Delhi’s power demand on an upward trend, any reduction in supply could lead to blackouts in the city.
This is not the first time that the NTPC has issued regulation notice to the BSES discoms, which supply power to 70% of the national capital, over non-payment of dues.
However, the situation has always been averted in the past by the intervention of the Supreme Court. “The payments by the BSES discoms had become irregular for quite sometime. The matter was brought before the SC, which in its judgement dated 26.03.2014 directed the two discoms to ensure payments of all current energy bills w.e.f. 01.01.2014. Even then, current dues amount to nearly Rs 1,300 crore,” said an NTPC offiical.
BSES Rajdhani supplies power to south and west Delhi, and BSES Yamuna to east and parts of central Delhi.
According to sources, the power allocated to the BSES discoms, Rajdhani and Yamuna, is 1,349 MW and 678 MW respectively. Delhi’s peak demand has already crossed 5,000 MW this season and experts said that a regulation of over 2,000 MW from the state-run power plants could cripple the city. Delhi currently produces 1,000-1,500 MW from its own plants and some like the Bawana are only partially functioning due to gas shoratge.

NTPC said they had no option but to regulate supply. “NTPC has to pay in advance to its fuel suppliers, 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,” said an NTPC official.
A BSES spokesperson, meanwhile, said that “BSES is under huge financial stress due to non liquidation of regulatory assets estimated to be over Rs 16,000 crore as on March 31, 2016. The payment of dues to power utilities by BSES discoms is sub judice in the SC. We are awaiting the judgement, which will clear the path for recovery/ liquidation of regulatory assets. BSES discoms are also making concerted efforts to address the situation and clear pending dues in a just and equitable manner.”
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