from the licensed business.”
BRPL pointed out that as against an admitted dues of Rs 5,206 crore, which has been deferred, their outstanding dues to its suppliers stand at Rs 1,071 crore. Asking to restrain NTPC from taking any coercive steps till the apex court determined the appropriate mechanism for adjusting its dues against the amounts which DERC owes them, the utilities have sought a direction to DERC to give effect to the deferred cost created as regulatory asset in accordance with the Tariff Policy.
BRPL said that DERC's impugned actions have unlawfully deprived it of its entitlements to recover legitimate dues of around Rs 5,206 crore (regulatory asset) along with assured return on equity accumulated over the last several years.
According to the BSES discoms, the unreasonable, arbitrary and unlawful treatment meted out by the Commission and the Delhi government can be gauged from the fact that the DERC in its statutory advice of December 15, 2010 and February 1, 2013 had admitted that BRPL's tariff causes a loss of over Re one per unit since tariff determined is not cost reflective, causing discoms to resort to extensive borrowing. In fact, the Commission had advised the Delhi government to take various ameliorative measures set out in statutory advice of February last year, the discoms added.
DERC in its statutory advice had recommend to the state government to support the distribution utilities through various Central and state government schemes, the petitions stated, adding that the discoms had even requested the Delhi government to release and adjust Rs 105.56 crore which the latter owed to BRPL towards outstanding dues to IPGCL and PPCL.
“Instead of either of them addressing the issues at hand, the DERC initiated proceedings on Tuesday for suspension of the licence of BRPL at the behest of the Delhi government,” the petition said.
The discoms said that it had in October 2012 clarified to the Delhi government that 8% surcharge allowed to it was not enough to meet the carrying cost (interest) of the regulatory asset.
NTPC’s move comes after it was forced to encash the LC opened previously by the discoms on January 31, after they failed to clear their dues to the generator. “So, the shortfall in LC with effect from February 1 is Rs 271.61 crore (in the case of BRPL),” NTPC said in its notice sent to the two firms. For BYPL, the LC