Apex court seeks DERC response on Tata plea

By: | Published: August 18, 2016 6:17 AM

The Supreme Court on Wednesday sought response from the Delhi Electricity Regulatory Commission (DERC) on an appeal by Tata Power Delhi Distribution

The Supreme Court on Wednesday sought response from the Delhi Electricity Regulatory Commission (DERC) on an appeal by Tata Power Delhi Distribution (TPDDL) challenging the regulator order that disallowed cost of procurement of power from the Anta, Auraiya and Dadri gas power stations of NTPC.

A bench headed by Justice Ranjan Gogoi, while refusing to stay the Appellate Tribunal for Electricity’s (Aptel) June 1 order, said it will hear the case after four weeks. The tribunal had dismissed the appeals by Delhi discoms against the DERC order of June 2015.

The regulatory commission had disallowed procurement cost from the three generating stations on the ground that the discoms had not taken its prior approval before signing the power procurement order with NTPC and this was against the licence conditions.

Challenging the Aptel order, TPDDL said the commission, while so disallowing the costs attendant to the power plants, lost sight of the fact that it is the commission which had in the tariff order of July 23, 2014, allowed the base power purchase cost of the three power plants.

In the 2014 tariff order, the commission had directed that TPDDL may claim the increase in the power purchase costs of Anta, Auraiya and Dadri gas power plants in accordance with the formula approved by it and accordingly recover from the consumers the increase in the power purchase cost after necessary approval of the commission, the petition pointed out.

According to the Tata firm, DERC lost sight of the fact that the purported ground of not having prior approval of the commission for scheduling power from these stations existed even on the date of the tariff order.

However, despite no such prior approval purportedly being in existence, the commission did allow the base power purchase cost of the power plant in the tariff order, it said.

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