Observing that in such disputes, it were consumers who ultimately suffer, bench asks power generator not to disconnect supply to BSES till Mar 26

NEW DELHI : Saving large parts of Delhi from a possible blackout from Monday, the Supreme Court directed Reliance Infrastructure Ltd’s electricity distribution companies in Delhi, BSES Yamuna Power and BSES Rajdhani, to pay 500 mln rupees (Rs 50 crore) to NTPC Ltd within two weeks, while asking the power generator not to disconnect supply to BSES till Mar 26, the next date of the hearing.

A bench headed by S.S. Nijjar observed that in such disputes, it were consumers who ultimately suffer, and said it will from Mar 26 start the final hearing in the dispute between the Delhi Electricity Regulatory Commission and power distribution companies of Delhi.
Two Reliance Infra-owned companies and Tata Power Distribution Ltd claim around 190 bln rupees from DERC and a case over the issue is pending in the apex court. Reliance Infra-owned power distribution companies in had moved the Supreme Court against NTPC’s recent notices threatening power disconnection.
The court passed the orders after NTPC’s counsel said they needed only 960 mln rupees for now to continue power supply and said “given the company and their promoters, can they not even pay 96 cr (960 mln) rupees?”
NTPC had issued notices to Reliance Infrastructure-owned distribution companies because of payment backlog. In the notice, issued Saturday, NTPC said BSES Rajdhani Power and BSES Yamuna Power had not maintained letters of credit of adequate value, a pre-requisite for getting power from NTPC stations, and threatened to cut power supply from Feb 11. -Cogencis

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