warning of consumer shock Discoms oppose DERC plea in SC
New Delhi, Oct. 29 -- Delhi's private power distribution companies (discoms) on Tuesday told the Supreme Court that consumers will be saddled with an additional burden of Rs.22,000 crore if it extends the four-year deadline to liquidate regulatory assets to seven years, on the request of the Delhi Electricity Regulatory Commission (DERC).
The discoms' submission came in response to a DERC application seeking modification of an August 6 court direction that ordered the return of Rs.31,500 crore in regulatory assets to BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power Limited (BRPL) and TPDDL over four years. DERC sought seven years, arguing it would create less of a "tariff shock" for consumers. But senior advocates Kapil Sibal and Abhishek Manu Singhvi, appearing for discoms, opposed the plea. Singhvi said, "If payment is spread out, there is a carrying cost of Rs.22,000 crore that will be added. So why is the Commission shedding crocodile tears for consumers?" Meanwhile, Sibal added adhering to court's schedule would ultimately benefit consumers by avoiding extra interest costs.
Solicitor general Tushar Mehta, for DERC, countered that sticking to 4-year deadline would more than double bills for some consumers, with hike of up to 109% for BYPL customers, 82% and 40% for BRPL and TPDDL consumers, respectively. A seven-year plan would reduce the impact to a 16-44% rise, he said. A bench of justices PS Narasimha and Sandeep Mehta reserved orders, indicating it would allow Appellate Tribunal for Electricity to determine the issue....
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