NEW DELHI: Electricity for consumers in the areas served by BSES Yamuna Power Limited (BYPL) is all set to become costlier with the power distribution company claiming that after the allocation of Power Purchase Agreements it has been left to shoulder expenses it cannot meet.

Crying foul over the allocation of PPAs, the discom contended that with the arrangements continuing as they are, power pricing in the BYPL areas is likely to witness a hike of up to 20 per cent. What is more, consumers will also have to deal with power cuts and poor services.

While the Delhi Electricity Regulatory Commission dismissed BYPL's concerns, the discom claims the allocation of PPAs post the formation on Delhi Power Procurement Group on April 2 is expected to cause a daily loss of Rs. 2.5 crore to the company.

BYPL has pointed out that since July 2002 its Bulk Supply Tariffs (BST) has increased by over 53 per cent, which is more than the corresponding increase in the BST cost for BSES Rajdhani Private Limited and North Delhi Power Limited.

The discom is also dissatisfied over having to buy "expensive power" and wants the PPAs to be allocated on the basis of "paying capacity".

"The company has to consider that the 15 per cent of the total power generated that is being allotted to them by the Delhi Government is at considerably lower costs. And there need not be a hike in power rates," said a DERC official.

But the discom is worried that the increase in the cost of buying power will put pressure not only on the tariffs but also on its finances.

It has sought relief on the ground that the increased cost of buying power at Rs. 7.50 a unit from Power Trading Corporation in Himachal Pradesh this year has also substantially increased the burden and over 90 per cent of its customers consume less than 250 units a months and pay power bills at the lowest slab of Rs. 2.20 per unit.

BYPL sources said: "Given that BYPL supplies power to over 8.5 lakh consumers -- over 90 per cent low-consuming customers in the Central and Eastern parts of Delhi -- the company will soon be in the red. The area it supplies to comprises domestic consumers and does not have the same consumer base as North or South Delhi."

Claiming to be unable to buy enough power, BYPL according to sources is now hinting at a tariff hike. It has also cautioned that it may not be "able to pay transmission charges and other statutory dues nor be able to carry out any procurement of essential materials for repairs and maintenance of the distribution network". Sources in the State Power Department said: "The company now wants the Government to consider a non interest bearing loan to bridge the estimated cash gap, firm allocation of the unallocated power pool to be made to BYPL for the purpose of trading and all income from such trading be included in the company's revenue stream and temporary assistance be provided by Delhi Power Company Limited and an upfront subsidy."

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