Cancel licences of discoms, Delhi government asks DERC

New Delhi, Feb 3: The Delhi government Monday asked the state electricity regulator to cancel the licences of the two power distribution companies that have expressed their inability to provide electricity to Delhiites owing to their financial outstandings to NTPC, which has threatened to stop providing power 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 Delhi Electricity Regulatory Commission (DERC).

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.

IANS