Peeved Delhi discoms dare government to take over ‘surplus’ power

Delhi's power distribution companies, peeved by the constant attack of Delhi's new Aam Admi Party government, have written to the state government asking it to take over management of surplus power for sale if it so desires.

In a letter written on 15 January but unveiled to the media on Monday, Anil Ambani  group firm BSES, the largest of the city-state three power distribution companies or discoms, has challenged the state government to take over the responsibility for ensuring adequate power supply to meet peak demand and to sell the surplus off-peak power in the most optimal manner at the price of its choosing.

BSES is controlled by Ambani's Reliance Infrastructure, and supplies power to two-thirds of Delhi consumers. It is facing allegations of selling a surplus 1,000 MW to group companies at below-market rates to supress profits

On the other hand, discoms maintain that power is surplus only during non-peak hours when prevailing market rates are low. So prices are usually lower than rates at which power is purchased from central generating stations under long-term power purchase agreements (PPAs).

In a letter to Delhi power secretary Puneet Goel, discoms have said they sell surplus electricity through transparent mechanisms like power exchanges, trading and banking arrangements and unscheduled interchange (UI), where all transactions are accounted by the state load despatch centre in compliance with the guidelines laid down by the regulator.

The discoms have further said that they cannot be held responsible for terms of the PPAs that were signed by the erstwhile Delhi Vidyut Board prior to its privatisation in 2002, and assigned to them in 2007.