SC tells NTPC to keep up Delhi power supply during payment row
27 Mar 2014
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The Supreme Court on Wednesday told power producer NTPC Ltd to continue supplying power to New Delhi and avoid a possible black-out in the capital even as distribution companies owe it huge sums.
Last month state-run NTPC had threatened BSES Yamuna Power, one of the three discoms in the capital, to cut off power supply if the company did not pay up pending dues.
The discoms, on the other hand, is battling the now-defunct Aam Aadmi Party government's decision to reduce electricity rates in Delhi, saying that it cannot pay the bills due to the revenue shortfall because of the lowering of electricity tariffs by the state government led by Arvind Kejriwal.
Power producers and distribution companies are whipping up a row over who should shoulder the rising cost of power in the city.
The Supreme Court, however, ordered Anil Ambani's Reliance Infrastructure Ltd group firm BSES to pay the dues it owes NTPC since 1 January 2014, but did not specify the amount the discom must pay.
The apex court reiterated that NTPC must maintain power supply even while the discom owed it money. The court said it will seek information from the DERC and BSES on how to resolve the revenue shortfall in the coming weeks.
The three distributors in Delhi claim to be facing accumulated revenue losses of more than Rs15,000 crore ($2.4 billion).
Last month state-run NTPC had threatened BSES Yamuna Power, one of the three discoms in the capital, to cut off power supply if the company did not pay up pending dues.
The discoms, on the other hand, is battling the now-defunct Aam Aadmi Party government's decision to reduce electricity rates in Delhi, saying that it cannot pay the bills due to the revenue shortfall because of the lowering of electricity tariffs by the state government led by Arvind Kejriwal.
Power producers and distribution companies are whipping up a row over who should shoulder the rising cost of power in the city.
The Supreme Court, however, ordered Anil Ambani's Reliance Infrastructure Ltd group firm BSES to pay the dues it owes NTPC since 1 January 2014, but did not specify the amount the discom must pay.
The apex court reiterated that NTPC must maintain power supply even while the discom owed it money. The court said it will seek information from the DERC and BSES on how to resolve the revenue shortfall in the coming weeks.
The three distributors in Delhi claim to be facing accumulated revenue losses of more than Rs15,000 crore ($2.4 billion).
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