AAP v/s Discoms: A high voltage drama

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26 Aug, 2025 12:21

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In a latest update to its clash with power discoms, Aam Aadmi Party (AAP)-led Delhi government has asked the state electricity regulator to revoke the licences of two distribution arms of Anil Ambani group—BSES Rajdhani Power and BSES Yamuna.

Also Read: Delhi govt warns discoms against power supply disruptions

The government has also asked Delhi Electricity Regulatory Commission (DERC) to identify and appoint new administrators for the utilities. The decision to call in for such drastic steps come after the discoms threatened a blackout.

We take a look at how this entire issue panned out.

December 31: After coming into power, AAP-led Delhi government clears a 50% cut in electricity tariffs. AAP orders an audit by the Comptroller and Auditor General into the finances of the capital’s three private power distribution companies -- BSES Yamuna Power, BSES Rajdhani Power and Tata Power.

Jan 22: The three power distribution companies file a petition in Delhi high Court seeking stay on the CAG audit. The companies said they (private companies) cannot come under CAG purview.

Jan 23: Delhi High Court rejects stay on the Delhi government’s order calling for an audit of power distribution companies. The HC asks CAG to not submit its final report till the case is heard.

Jan 30: Ahead of the power hike announcement, discom BSES Yamuna Power threatens to carry out power cuts up to 10 hours in Central and East Delhi from February. The company says it has no funds to pay public sector generation units for power supplies.

Jan 31: With an intention to help power companies facing financial difficulties, electricity regulator DERC steps in.

DERC hikes power tariff (surcharge) in New Delhi by up to 8 percent amidst a looming threat of power cuts.

Reacting sharply to the regulator’s decision, Delhi chief minister Arvind Kejriwal says it should have waited for the CAG audit report.

Kejriwal even accuses BSES discoms of trying to ‘blackmail’ the government by threatening power cuts up to 10 hours a day, and warns them of strict action, including possible cancellation of licences.

Feb 1: Power generation ulility NTPC threatens that it will stop its 2,000-MW supply to BSES distribution companies beginning February 11 over non-repayment of dues.

As per the Power Purchase Agreement (PPA) between the discoms and NTPC, BSES is to ensure Letter of Credit (LC) for a minimum amount. In a notice that NTPC sent to BYPL, the power generator said: “Since BYPL has not provided the LC of the requisite amount (creating a payment shortfall of Rs 96 crore), notice for regulation of power supply for 90 days with effect from the midnight of February 11 is hereby given.”

Feb 3: The Delhi government writes to state electricity regulator asking that licences of discoms to be suspended if power supply is disrupted. Discoms, on the other hand, say the state government is yet to provide any options for alternate source of funding.

Written for the web by Kankana Roy Choudhury