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Home News Power Sector News Delhi private Discoms demand 20 per cent increase in tariff

Delhi private Discoms demand 20 per cent increase in tariff

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DERCConsumers in the national capital may have to pay more for electricity if the power regulator, the Delhi Electricity Regulatory Commission (DERC), accepts the demand of three power distribution utilities, which have sought about 20 per cent hike in electricity tariff, citing severe fund crunch.

Tata Power Delhi Distribution Ltd (TPDDL) has sought about 20 per cent increase in tariff and Reliance Power-owned BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) have demanded a hike of 19 per cent and 16 per cent respectively.

The three private power distribution companies have sought up to 20 per cent hike in tariff to meet rising cost of power procurement.

The DERC is in the process of reviewing the power tariff for 2015-16 and has hinted that it may go up notwithstanding the AAP government's firm position against any increase. The quasi-judicial body is likely to announce revised power rates next month after taking views of all the stakeholders, including RWAs and the discoms.

The AAP government had recently asked the DERC to explain a series of hikes it effected in the last couple of years and indicated to it not to hike the tariff again till the CAG completes audit of the discoms.

The power regulator, however, refused to follow government's diktat and decided to go ahead with the tariff determination process, arguing that the commission was "totally independent" to review the rates.

The private power distribution companies have already conveyed to the DERC that "absence of cost reflective tariff and denial of power purchase adjustment cost (PPAC) for last few months have depleted their financial positions".

The PPAC, which was introduced four years ago to help the discoms adjust their power purchase cost, was discontinued by the regulator five months ago.

As per DERC figures, the two BSES discoms have a revenue gap of around Rs 10,000 crore between 2009-2013. The AAP government is of the view that the power tariff should not be hiked till the CAG completes its audit of the discoms.

Source- Asian Age


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