SC restrains Delhi power utilities from disconnecting electricity supply to BSES

The Supreme Court has restrained Delhi power utilities from disconnecting electricity supply to BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL) and directed them to maintain status quo till further orders.

Power generation companies Indraprastha Power Generation Company (IPGCL) and Pragati Power Corporation (PPCL) had issued notices to BRPL and BYPL seeking payment of dues and threatening disconnection of supply to these distribution companies.

A bench of Justices S A Nazeer and V Ramasubramanian issued notices to the Ministry of Power, Delhi Electricity Regulatory Commission, Delhi government and others while seeking their responses.

"Issue notice. Until further orders, status quo, as it exists today, shall be maintained by the parties," the bench said while posting the matter for resumed hearing after eight weeks.

The order came on a plea filed by BSES Rajdhani Power Ltd seeking a direction to IPGCL, PPCL and others to act as per the top court's earlier orders and not take any coercive steps against them.

The apex court had, by its two orders dated March 26, 2014 and May 12, 2016, granted protection to the discoms against any coercive action, the petition stated.

The plea sought directions to these companies not to disconnect the power supply or take any other coercive step till the court determined an appropriate mechanism for adjusting the dues owed by the discoms.

"The impugned actions of respondents have resulted in a situation where BRPL is total cash strapped and has been forced to take a loan to fund its day-to-day operations, which have also dried up leaving it inadequate monies to pay its suppliers," the plea said.