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Home News Power Sector News Delhi - Tata Power wants consumers to pay reliability charge

Delhi - Tata Power wants consumers to pay reliability charge

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DelhiNorth Delhi power distribution company Tata Power Delhi proposes to levy a new "reliability charge" on commercial and industrial consumers who use more than 600 units in a month. According to the average revenue requirement (ARR) petition filed by the discom, the extra fee is in return for better service and augmented supply as high-end consumers no longer need to depend on expensive alternatives such as diesel gensets.

In the ARR petition, the discom asked Delhi Electricity Regulatory Commission (DERC) to allow them to charge a reliability fee as a "separate component of tariff." The discom said that high-end consumers should be asked to pay an extra fee as the company has managed to cater to the city's growing demand for power and made it possible for high-end consumers to almost do away with gensets.

The DERC will take up the proposal at the tariff determination hearing that will be held in a few weeks, before arriving at new tariff figures for 2012-13. So far other discoms, BSES Rajdhani and BSES Yamuna, have not made any such case for charging a reliability fee.

"These high-end consumers in any case were spending Rs 10-12 per unit for ensuring continuous supply of power by operating and maintaining personal generator sets. Discoms, by ensuring a reliable power supply, has facilitated such consumers who are now no longer using DG sets thus their expenses for managing the same has gone down considerably," the discom said in its petition. To further their argument, the discom also claims to have "incurred huge capital expenditure" to strengthen its existing network, pointing out that efforts have been made to manage the peak demand in order to maintain grid stability and to provide an un-interrupted supply of power to all its consumers.

The discom explained that the fee will be levied in lieu of the amount which high-end consumers managed to save by not having to maintain and operate alternative power sources. The discom added that this fee would help to 'safeguard' low-end consumers so that they are not subjected to higher tariff rates. Many power sector experts, however, are not in favor of reliability charges and say that discoms are obliged to provide power 24/7 throughout the year.

Source- Times of India

 

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