The DERC received a notice from the Delhi government asking to keep the electricity tariffs the same as yesterday.

CM Sheila Dikshit said “The Government of Delhi had received some representations from the three distribution companies, BRPL, NDPL and BYPL, on the issue of severe cash flow constraints affecting their ability to purchase power in 2010-11... The government felt the issues raised by the distribution companies are serious and has accordingly directed the Delhi Electricity Regulatory Commission to examine these issues and to submit its statutory advice on these issues to the government, their revenue gaps have accumulated beyond sustainable levels and the assumed higher projections for tariff fixation have eroded their capability to buy more power and also that due to high debt to equity ratio they are finding it difficult get further loan from the bank to continue their operations.”

The tariff charges have been kept for evaluation for a while now. The DERC are still calculating the cost of income versus expenditure to decide on the tariff required.

“We are bound by the counting standards of this country which require us to show the amounts recoverable for the current year as income against the current year’s expenses. On a cash flow basis NDPL is running into cash losses. On paper we have profits if regulatory assets are released to us. In fact, as far as liquidity is concerned, we have suffered losses.”an NDPL spokesperson said.

The CM told the DERC to keep the rates the same. The government has received letters from the discoms based on the restraints to purchase power.