Delhi govt asks DERC to cancel licences of discoms

The Delhi government has asked the Delhi Electricity Regulatory Commission (DERC) to cancel the licences of the two power distribution companies in the state that have expressed their inability to provide electricity to Delhiites owing to their financial outstandings to National Thermal Power Corporation (NTPC).

State-owned NTPC has threatened to stop providing power to the discoms unless the dues are paid.

"The stand of discoms, that due to their financial difficulties, they will be unable to supply power to consumers of Delhi for long hours in a day, calls for revocation of their licences by DERC under section 19(d) of the Electricity Act, 2003," said the government in a letter to the state electricity regulator.

The discoms (BSES Rajdhani Power Limited and BSES Yamuna Power Limited) are allegedly pleading funds crunch because of which they have been unable to pay NTPC for purchase of power, the government said.

"NTPC, a major supplier of power to discoms, is maintaining that it shall not be able to supply power beyond Feb 10 unless payment for the purchase of power is forthcoming from these discoms," it added.