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BSES moves power regulator for tariff hike in Delhi

New Delhi: BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, the two units of Reliance Infrastructure Ltd that supply electricity to about 3.5 million customers in the national capital, on Monday, approached the Delhi Electricity Regulatory Commission seeking an increase in power tariff for 2016-17 to recover accumulated losses incurred from the sale of power below cost of procurement.

The move follows a threat by state-run power producer NTPC Ltd to cut electricity supply to the two power distribution companies from 10 May for non-payment of dues worth Rs.1,300 crore.

The two utilities have asked the regulator to give a schedule for recovering the past losses of about Rs.16,000 crore, said a person familiar with the BSES move, who declined to be named.

The companies collectively purchase 2,027 megawatts (MW) a month from NTPC.

NTPC had on 5 May stated that it served notices to BSES Yamuna and BSES Rajdhani for the regulation of power supply with effect from midnight of 10 May for 2,027MW, the total amount of power bought by the distributors.

On the same day, the two BSES units said that it was under financial stress due to the revenue gap and it is trying to clear the pending dues in a just and equitable manner.

NTPC argued it has to pay upfront for raw materials and i