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Home News Power Sector News DERC asks for feedback over power tariff revision

DERC asks for feedback over power tariff revision

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Delhi DERCElectricity Regulatory Commission (DERC) recently issued a notice asking stakeholders for their feedback on the power tariff petitions filed by the three power companies by January-end.
As per sources, the discoms have shown a combined revenue gap of over Rs 2,000 crore in their average revenue requirement (ARR) petitions for financial year 2018-19 . This estimated gap would be scrutinised by DERC for tariff announcement for 2018-19 fiscal year.


The power companies have been unhappy with the decision of last year's tariff order where DERC had said there was no need for a hike. This year, discoms have already started making representations on why a tariff revision was necessary and also simultaneously appealing to DERC to rethink on some of the tariff-related decisions taken last year.

The total expense estimated for 2018-19 shown by BSES discoms is Rs 10,157 crore for BRPL and Rs 5,405 crore for BYPL. The estimate expense for Tata Power Delhi is Rs 7,085 crore. "As against this, the estimated revenue is Rs 9,140 crore for BRPL, Rs 4,718 crore for BYPL and Rs 6,597 crore for Tata Power. Accordingly, the total revenue gap estimated is Rs 1,017 crore for BRPL, Rs 687 crore for BYPL and Rs 488 crore for Tata Power,'' said petitions filed by the discoms, adding that their combined revenue gap is approximately Rs 34,000 crore.

The discoms have asked for tariffs to be increased to take care of the estimated gap during 2016-17 and the recovery of the revenue for the past period due to creation of regulatory assets/under recovery, an official said .The discoms have also asked for a tru-up of costs incurred in 2016-17. "The projected gap for 2016-17 has been Rs 648 crore for BRPL, Rs 223 crore for BYPL and Rs 532 for Tata Power,'' said the discoms.

DERC would hold a public hearing with the stakeholders the date for which would be notified separately.


Source- TOI


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