BSES discoms want Rs 8,000 crore dues in not 8, but 3 years

NEW DELHI: DERC's proposal for an eight-year plan to recover outstanding dues of Rs 8,000 crore isn't enough for the BSES discoms. Both BSES Rajdhani and Yamuna want the tenure to be reduced from eight to three years, which could mean a substantial tariff hike for consumers.

Besides moving Delhi Electricity Regulatory Commission (DERC), the discoms have also applied to the Supreme Court, which is hearing the case with NTPC over outstanding dues. Early this week, the BSES counsel told the court, "A roadmap has been given for the recovery of shortfall in tariff of the past. It is spread over six years-2014-15 to 2019-20. We want just one change in that-a roadmap of three years."

Sources said the discoms had also told DERC that they be allowed to meet the revenue gap (regulatory overhang) through surcharge rather than tariff. Although DERC is yet to reply, it is unlikely to accept the reduced tenure plea, said DERC sources. "It is not feasible as this could lead to a huge tariff burden on consumers," said a source.

The surcharge demand has also surprised the commission. "Their concern should be that financing institutions believe that they (discoms) can now meet funding requirements with the recovery roadmap. Whether their dues come from tariff or surcharge would not make a difference," said a source.

Earlier this year, DERC had acknowledged that the discoms had a massive regulatory overhang and come up with the recovery roadmap. "The liquidation of the revenue gap of Rs 3,643 crore for BRPL, Rs 1,998 crore for BYPL and Rs 2,359 crore for TPDDL is proposed in a scheduled manner through equal instalments to avoid tariff burden on consumers.

The annual instalments allowed to be liquidated are Rs 424 crore for BSES Yamuna, Rs 769 crore for BSES Rajdhani and Rs 478 crore for Tata Power Delhi," the DERC letter had said.