In a relief to three Delhi discoms, the Delhi Electricity Regulatory Commission (DERC) has apprised lenders of its road map for recovery of revenue gap (by means of liquidation of regulatory assets) in the discoms? books.
The move comes at a time when two BSES discoms ? BRPL and BYPL ? are fighting a legal battle in the Supreme Court with NTPC over their failure to pay the PSU power generator in time for their power purchases.
The Power Finance Corporation (PFC) and other lenders who have been approached by the discoms for a fresh loan of R10,000 crore to tide over the current crisis, have asked for ?certain guarantees? before they roll out more loans to the discoms.
?The DERC has informed PFC that the regulator has recognised R11,400 crore of revenue gap (with BYPL, BRPL and TPDDL) till 2011-12 and have come up with liquidation plan for R8,000 crore of this amount over the next few years. This will be reflected in the new tariff, expected to be announced by July,? a source told FE.
After 2011-12, build-up of new regulatory assets has slowed due to some tariff adjustments.
DERC chairman PD Sudhakar confirmed to FE that a communication was sent to PFC on Wednesday. ?They (lenders) consulted us on the liquidation of regulatory assets and we have explained the position and shared the road map prepared to recover the gap,? Sudhakar said.
The other lenders approached by the BSES discoms include REC, IDBI Bank and State Bank of India.
While PFC insisted on guarantees for giving fresh loans to the BSES discoms, BSES? lead banker IDBI Bank has already told the companies that a fresh loan looks difficult until there was certainty over the future stream of payments. IDBI Bank has also raised the issue of the companies defaulting in payments to suppliers.
?A road map has been given for the recovery of shortfall in tariff of the past. The road map is spread over six years ? 2014-15 to 2019-20. We want just one change in that ? a road map of three years,? BSES counsel told the Supreme Court. It is not immediately known what outer limit has been fixed by the DERC now for the liquidation of R8,000-crore regulatory
assets.
NTPC was allowed by the apex court to cut power supplies to the two BSES discoms unless they latter paid about R700 crore by May-end. In March, DERC allowed the discoms to recover the pending revenue in phases starting 2014-15.
