BackDelhi govt move to revoke licence illegal: discoms
Discoms say they expect DERC to proceed independently and in accordance with laws in dealing with the issue
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New Delhi: Reliance Infrastructure Ltd-backed BSES discoms on Tuesday criticized the Delhi government for recommending to power regulator Delhi Electricity Regulatory Commission (DERC) to revoke their licences, saying the proposal was “arbitrary" and “illegal" and will be a huge setback to power sector reforms.
The two discoms, BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd, said they were “deeply concerned" over the move and “extremely surprised" that such a measure was not raised in the board meeting of the discoms last week. The Delhi government has 49% stake in each of the discoms. The discoms said it expected the regulator to proceed independently and in accordance with laws in dealing with the issue.
“Delhi government’s proposed step is a huge setback to power sector reforms, with grave repercussions for the country’s future economic growth. DERC’s failure to provide appropriate tariffs to cover increase in power purchase costs has led to under-recoveries of over 15,000 crore from consumers," the discoms said.
Meanwhile, Tata Power Delhi Distribution Ltd, one of the three private discoms,on Tuesday moved the Delhi high court against a single judge bench order refusing to stay the city government’s decision asking the Comptroller and Auditor General to audit its accounts. PTI
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