In the ongoing tussle between state-run thermal power firm NTPC and Reliance Infra-promoted power distribution companies (discoms) operating in Delhi, the generator has issued another power regulation notice to the discoms on account of unpaid bills amounting to R961.6 crore. NTPC has said it would discontinue 445 MW of power supply from its coal-based power plant located in Jhajjar, Haryana, from midnight of Monday next week.

“The payments by the BSES discoms became irregular for quite sometime. The matter was brought before the Supreme Court. The apex court in a judgment in 2014 had directed the discoms to ensure payments of all current energy bills since the beginning of 2014,” NTPC said in its statement.  It added that despite clear directions from the SC, the dues continued to accumulate and currently stand at R961.6 crore.

The company had issued a similar notice to the discoms in May. However, the matter was temporarily resolved after the discoms provided the generator with payment plan.

NTPC’s Aravali Power Company (APCPL) in Jhajjar has been supplying power to BSES Rajdhani Power (BRPL) and BSES Yamuna Power since 2011. The power allocated to these discoms from APCPL is 445 MW and the average monthly energy bill currently is Rs 87 crore for the current financial year.

APCPL has to pay in advance to its fuel suppliers which constitute about 70-80% of its monthly energy bills. If the above situation continues, APCPL being a single power station company is unable to meet any of its commitments inter alia, including payment to fuel suppliers, debt servicing requirements and even payment of salaries to its employees, NTPC said in a statement. It added that APCPL had no other option but to regulate power.

In response to the NTPC notice, BSES discoms have blamed non-liquidation of R16,000 crore of regulatory assets for their inability to clear dues. The discoms had approached the Supreme Court for resolution of issues related to liquidation of regulatory assets, but the judgment has been pending since February, 2015.
“Moreover, BSES discoms have sufficient power at their disposal and the regulation will not have any impact whatsoever on the power supply situation in the city,” BSES said in a statement.