Discom BSES Yamuna Power says DERC misinterpreted audited accounts
02 Jun 2010
Responding to the Delhi Electricity Regulatory Commission's (DERC) letter, power distribution company (discom) BSES Yamuna Power Limited said the DERC has ''misinterpreted'' its audited accounts.
The regulatory body said that it had written to the three discoms in Delhi on Monday saying their accounts reflected healthy profit generation and therefore their representations to the Delhi government indicating a 'financial crisis' were inaccurate.
The DERC after studying BYPL's audited accounts had said the discom's net worth stood at Rs320.06 crore.
''The above net worth is only after accounting Rs262.55 crore of regulatory assets, and excluding this item the entire net worth would have been wiped out,'' the BYPL has contested. Regulatory assets constitute the gap between the projection made by the DERC in its tariff order during a certain financial year and the actual expenditure the discoms incur. According to the discoms the DERC owes them regulatory assets since 2002.
BYPL, in its letter also said, ''We have been able to raise funds so far after promising bankers about the future tariff hike to neutralise our accumulated losses, and liquidating regulatory assets.''
The statement points to the expectations of the discoms regarding a tariff hike in the current tariff order. The BYPL has also appealed to the commission to ''revise tariff to restore financial viability.''
