Show cause notices have been issued by the Delhi Power Department to two power distribution companies (discoms) over pending dues and late payment surcharge on those dues.
The notices issued in September, have sought the response of Discoms BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL) on the payment of the amount due to power generation companies as well as the late payment surcharge (LPSC).
In Delhi, power is distributed to customers by discoms, who buy it from power distribution companies. Apart from BSES companies, the New Delhi Municipal Council, Tata Power Delhi Distribution Limited, and Military Engineering Services distribute power in the city.
The notices on the issue of LPSC state that the two companies reduced the rate of surcharge from 15%/18% to 12% “suo motu” and said it was “without any basis and completely illegal”.
“In one stroke, it has reduced their LPSC liability and written back LPSC expenses of Rs 1,948.76 crore which was booked till March 2021. This illegal act of BRPL and BYPL shall adversely impact financial position of Delhi Power Companies,” the notice issued to BRPL states.
A similar notice to BYPL puts the amount of reduced liability at Rs 1,301.32 crore.
The notice for payment of current charges pegs the BRPL dues at over Rs 5,419 crore and the BYPL dues at over Rs 4,718 crore.
“The show cause notices asked for replies and threatened to initiate stringent actions under existing laws. This could include suspension of the licence of the discom,” a senior government official said.
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Sources in the Discom said, “There is no non-compliance of any statutory provisions. Moreover, matters concerning the Delhi Discoms and Delhi State Government Power Utilities are sub-judice before Hon’ble Supreme Court. Parties involved have been directed to maintain status quo till further orders.”
According to power department officials, the discom in their reply said their accounts were vetted by government nominees on their Board. “These nominees were private or political persons appointed by the AAP government and their appointment was nullified by the L-G earlier this year by invoking difference of opinion with the elected government and referring the matter to the President,” the official said.
The L-G had ordered the removal of AAP leader Jasmine Shah; MP ND Gupta’s son Naveen Gupta; and two other BSES board members — Umesh Tyagi and JS Deswal — in February.