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Home News Power Sector News Delhi - DERC hikes power tariff by up to 7%

Delhi - DERC hikes power tariff by up to 7%

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DelhiThe Delhi Electricity Regulatory Commission (DERC) on 13-11-2014 allowed electricity distribution companies (discoms) to levy a Power Purchase Cost Adjustment charge (PPAC), so the electricity tariffs for Delhi customers will increase from November 15. The power tariff hike varies from 2.5 per cent to seven per cent.

For the consumers getting electricity from BSES Yamuna, the increase will be seven per cent. BSES Rajdhani customers will have to shell out 4.5 per cent extra and Tata Power Delhi Distribution Ltd customers will find power 2.5 per cent costlier. The current levy of PPAC will last till February 14.

The hike, however, is significantly lower than that was being asked by the discoms TPDDL had asked for a 7.42 per cent hike, BSES Rajdhani 7.26 per cent and BSES Yamuna 17.01 per cent.

The BJP and the Aam Aadmi Party have criticised the DERC decision to increase the levy.

The DERC notification said that the surcharge is applicable on the pro-rata consumption with effect from November 15. "The PPAC is to be levied only on the basis of energy consumed from November 15 till February 14 or till further orders," the notification added. The PPAC is a surcharge levied to compensate the discoms for variation in fuel costs in the market. The component was introduced in 2012 to help discoms recover additional costs of procuring power. Condemning the decision to allow the hike, Delhi BJP president Satish Upadhyay said the party had all along opposed this surcharge.

"The DERC stands exposed as standing with discoms and working against consumers. The BJP will raise this before the Union energy minister and Delhi lieutenant-governor to stall the implementation of this increase in power tariff," added Mr Upadhyay.

The AAP too opposed the decision and said that the DERC had failed to perform its duty as an independent regulator. "Its decisions seem to benefit the discoms, which are under CAG scrutiny. The DERC should have waited for the CAG audit to be completed before revising tariff," said AAP in a statement.

Source- Asian Age


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