NTPC to cut power supply to BSES, BRPL on Rs 1,300 cr dues

State-run NTPC has threatened to snap power supply to Reliance Infra-backed discoms in Delhi -- BRPL and BYPL -- if they fail to pay around Rs 1,300 crore dues by midnight on May 9.

"A notice for regulation has been served on the BRPL & BYPL for regulation of power supply with effect from 00:00 hours of May 10, 2016 for a total quantum of 2027 MW," NTPC said in a statement.

According to the statement, BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power (BYPL) are yet to clear dues of around Rs 1,300 crore (Rs 892.30 crore and Rs 402.93 crore respectively).

NTPC said that it has to pay in advance to its fuel suppliers which constitute about 75-80 per cent of its monthly energy bills.

"If the above situation continues, NTPC stations may be facing outages on account of shortage of fuel. Under the circumstances NTPC has no other option but to serve the notice for regulation of power on the BSES DISCOMs," it said.

The company further said that the payments by the BSES DISCOMs had become irregular for quite sometime. The matter was brought before the Supreme Court, who in their judgement on March 26, 2014, directed the BSES DISCOMs to ensure payments of all current energy bills with effect from January 1, 2014. However, despite clear directions of the Supreme Court, the dues continued." NTPC has been supplying power to BSES DISCOMs in Delhi since unbundling and privatisation of DVB.

The power allocated to these DISCOMs from various NTPC power stations is 2,027 MW (1349 MW & 678 MW respectively) & average monthly energy bill is presently of the order of Rs 390 crore (Rs 260 crore & Rs 130 crores respectively), the statement said.

Commenting on the matter, a BSES spokesperson said, "BSES is under huge financial stress due to non-liquidation of regulatory assets estimated to be over Rs 16,000 crore as on March 31, 2016. As compared to this, dues payable by BSES to NTPC are around Rs 1,300 crore." "We are awaiting the Supreme Court judgement, which will clear the path for recovery / liquidation of regulatory assets. BSES discoms are also making concerted efforts to address the situation and clear pending dues in a just and equitable manner," the spokesperson added.