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Home News Power Sector News Delhi - Steep power tariff hike likely next month

Delhi - Steep power tariff hike likely next month

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DERCDelhi's electricity regulator has confirmed that it would announce new power tariffs in the first half of July along with a new code spelling out penalties on distribution companies if they fail to deliver services on time. Sources said the tariff revision to be announced by Delhi Electricity Regulatory Commission could be more than last year's 22% hike. While north Delhi discom Tata Delhi Power has sought an 18% rise, BSES Rajdhani wants a hike of 20% and BSES Yamuna has asked for a 27% increase in consumer tariffs.

Delhi Electricity Regulatory Commission is likely to announce new power tariffs in the first half of July. Tata Delhi Power, BSES Rajdhani and BSES Yamuna, along with NDMC, had submitted their petitions for revised tariffs in January this year.

The demanded hike is not inclusive of amounts claimed by the discoms for past years, which DERC had declared was due to the companies.

In addition, when the new tariffs were announced in 2011-12 , DERC had declared the three discoms had a collective revenue gap of Rs 6,000 crore, out of which only Rs 1,200 was recovered through a 22% hike last year. The regulator had stated the remaining Rs 4,800 crore would have to be recovered by discoms in the next three years.

"The hikes sought by the discoms for the next year are not inclusive of this gap. Their tariff petitions will be studied and accordingly a tariff revision will be announced in due time,'' said a senior DERC official . The discoms have also demanded that the revenue shortfall for 2010-11 be made good - something that has so far been denied to them.

For the consumers, the only bright spot in the upcoming DERC announcement is likely to be the implementation of the long-pending draft Delhi electricity supply code and performance standard regulations . In the proposal, a discom is liable to pay a penalty ranging from Rs 10 to Rs 500 per day, for failure to provide timely services or address grievances.

Source- ET


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