STATESMAN NEWS SERVICE
New Delhi, 11 March
The Appellate Tribunal of Electricity (ATE) today asked the Delhi Electricity Regulatory Commission (DERC) and private power distribution companies in the city to lay out a roadmap for liquidation of "regulatory assets" worth up to Rs 8,000 crore.
However, DERC stated that the accumulation of the arrears pending to the Delhi discoms will not bring any substantial change in the tariff for Delhi’ites.
"The present order has no connection with the determination of tariff. Both the issues are separate from each other," said Mr PD Sudhakar, chairman, DERC.
The regulatory commission of electricity had proposed a provisional insolvency of Rs 8,000 crore worth of regulatory assets for Delhi discoms that have mounded up on their balance sheets.
On the other hand, power experts say that today’s order would dole out a slight increase in the rates of power tariffs in the future. "The rates of power are not totally depended on this order but it will definitely lead to an increase or slight impact in the power rates," said a power expert.
Meanwhile, the discoms welcomed the Aptel’s order. "We welcome the order of Tribunal 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," said Prashant Dua, BSES spokesperson.
Tata Power, on the other hand said, "The DERC has recognized and given a part amortization schedule of the Regulatory assets and its liquidation over a period of time. This is being provided in lieu of the existing 8 per cent deficit surcharge. We at TPDDL believe that it is a very progressive step by the Regulator. It sets a benchmark or baseline and provides a road map for treatment of regulatory assets and its liquidation in future based on the true up of accounts and capitalization of investment."
Whereas, DERC has already proposed last week a road map for payment of over Rs. 8,000 crore and interest thereon owed to the Discoms.