NTPC withdraws power regulation notice to BSES discoms

NTPC withdraws power regulation notice to BSES discoms

Days after NTPC issued a notice to Delhi-based BSES power distribution companies regarding regulation of power supply due to pending dues, the state-run power generator has withdrawn the notice after an amicable settlement was reached between the two parties.

The settlement talks were mediated by the Delhi Electricity Regulatory Commission (DERC).

NTPC withdrew the notice in view of the payment schedule communicated by the discoms, a source privy to the development told FE. Earlier this month, NTPC had said it would start regulating power as the discoms had failed to clear dues amounting to `1,300 crore.

Reliance Infra-promoted BSES discoms have`16,000 crore of undisputed regulatory assets, accumulated over the years due to inadequate tariff hikes that were not commensurate with electricity procurement cost.

As per the BSES’ communication to DERC, the discoms’ cost of buying power has increased by around 300%, while the retail tariff has increased by around 90% since 2002. In the last two years, BSES discoms have paid in excess of `9,500 crore to NTPC.