The Delhi High Court has been hearing a petition by BSES seeking an upward revision in power tariffs.
Continuing the argument in an ongoing case seeking a hike in power tariffs, Delhi-based power distribution company (discom) BSES said the city's electricity regulator should allow the firm compensation for regulatory assets (past losses).
BSES has petitioned the Delhi High Court, seeking its direction to ask the Delhi Electricity Regulator Commission (DERC) to increase power tariff for past losses as well as to bridge the current gap between costs and revenue. It has further sought a mechanism for passing on future increases in cost to consumers.
BSES runs two discoms, BSES Yamuni and BSES Rajdhani, in Delhi, which claim to have together ratcheted up losses of about Rs 8,000 crore thanks to power tariffs being lower than cost.
The DERC, on the other hand, said the two discoms have inflated its expenses and underplayed revenues and added that their claims have been at variance with the observations of a CAG audit by the Delhi government.
The regulator further pointed out that the city's third discom, Tata Power, had been operating under the same regime, and unlike BSES, has been paying dues to power generation companies regularly.
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