Unlike its earlier claims, the three power distribution companies in the national Capital have projected their regulatory assets for the financial year 2014-15 to go up to a whopping Rs 27,000 crore.
Prior to submitting their petitions to power regulator Delhi Electricity Regulatory Commission (DERC), the discoms had projected the same to be around Rs 19,500 crore. In case the power regulator accepts the Annual Revenue Requirement (ARR) stated by the power utilities then Delhiites will have to brace up for a steep tariff
hike this year. Meanwhile, the Appellate Tribunal of Electricity (APTEl) on Tuesday asked the Delhi Electricity Regulatory Commission (DERC) and the discoms in the city to lay out a roadmap for liquidation of ‘regulatory assets’ worth up to Rs 8,000 crore.
The Reliance-owned BSES Rajdhani Power limited (BRPl) in its petition has stated an ARR of Rs 9,361 crore for the coming year. Similarly, BSES Yamuna Power limited (BYPl) has projected an ARR amounting to Rs 5,527 crore, whereas, Tata Power Delhi Distribution limited (TPDDl) has estimated its revenue requirement for the same period at Rs 6,079 crore. If these losses are accepted by the DERC then power tariffs for this year are set to hit the roof. However, the power regulator so far has not accepted the stated figures and will seek public opinion through hearings on the same.
Keeping in tandem with the order passed by the APTEl, the DERC had recently proposed a provisional liquidation of Rs 8,000 crore worth of regulatory assets for Delhi discoms that have piled up on the balance sheets of the three discoms. Acting on the constant allegation by the discoms of ‘non-reflective’ tariffs, the DERC recently said it would raise tariffs to compensate for Rs 8,000 crore of regulatory assets over a period of eight years. Tuesday’s APTEl order would serve as a boost for the discoms and will likely lead to higher power tariffs in the future.
“We welcome the order of APTEl directing DERC to take an early decision for liquidation of the huge accumulated arrears owed to the Delhi discoms. APTEl has clearly directed DERC to ensure sustainability of the business of the discoms. It has also recognised the need for financial support from the Government to ensure discoms recover their past dues, with minimum burden on consumers,” said a BSES spokesperson.