New Delhi, Feb 4 (IANS): Delhi Chief Minister Arvind Kejriwal Tuesday sought Lt Governor Najeeb Jung's intervention in the looming power crisis in the capital, while suggesting that the state electricity regulator has no option but to cancel the licences of the power discoms which have created an "ugly situation".

The BSES discoms, however, protested the proposed move, terming it "arbitrary and illegal".

Kejriwal wrote to Jung stating that "the Delhi Electricity Regulatory Commission has no alternative but to suspend the licence of power distribution companies if they are unable to supply electricity".

He also said that it is presumed that DERC has taken care of the financials of power distribution companies by providing adequate tariff under the Electricity Act, 2003.

"I am bringing this most serious matter to your notice as the government itself may have to step in at some stage to control the ugly situation which may be created by the three power discoms," the letter said.

The development came a day after the the AAP government asked the state power regulator to cancel the licences of BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL).

India's largest power generation utility, the NTPC has decided to suspend electricity supply to the discoms over unpaid dues after Feb 10.

In their reaction, the discoms said: "As legally advised, the proposed cancellation of licences in this situation is arbitrary and illegal and will only serve to demotivate thousands of our employees who have timelessly worked to transform the power supply situation in Delhi."