NTPC warns BSES of cut in power supply from 10 May

State-run NTPC Ltd told two units of Reliance Infrastructure Ltd, which distributes electricity in large parts of Delhi, that power supply will be cut from 10 May over non-payment of dues, highlighting the financial distress?in the distribution business.

NTPC, in a statement, said BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL), which collectively purchase 2,027 megawatts (MW) a month from the producer, owe it around Rs.1,300 crore.

“A notice has been served on BRPL and BYPL for regulation of power supply with effect from 00:00 hrs of 10.05.2016 for a total quantum of 2,027MW,” the NTPC statement said.

BSES said it is under financial stress because of non-liquidation of regulatory assets (that is, for costs yet to be permitted by electricity tariff regulators), estimated at overRs.16,000 crore as on 31 March.

“As compared to this, dues payable by BSES to NTPC are around Rs.1,300 crore. The payment of dues to power utilities by BSES distribution firms is sub judice in the Supreme Court. The judgement in the matter is reserved since February 2015. We are awaiting the Supreme Court judgement, which will clear the path for recovery/liquidation of regulatory assets,” said a BSES spokesperson.

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