Appellate Tribunal for Electricity upholds cancellation of licences of 3 Odisha discoms
The Appellate Tribunal for Electricity (Aptel) has upheld cancellation of distribution licenses in Odisha for three companies for poor performance and financial trouble that hindered their operations.
Distribution firms Western Electricity Supply Company of Odisha Limited (Wesco), North-eastern Electricity Supply Company of Odisha Ltd (Nesco) and Southern Electricity Supply Company of Odisha Ltd (Southco) had challenged the state regulator’s order of March 2015 that terminated their licenses and appointed an administrator.
The state regulator revoked the distribution licenses on the grounds of high distribution losses, massive erosion of net worth, heavy default in payment of power supplier GRIDCO, inefficient billing, and not adhering to directions for energy audits. Aptel Chairperson Ranjana P Desai and Technical Member NJ Kapoor rejected the argument of the distribution companies that principles of natural justice had been violated and that they were not given proper opportunity for hearing