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Home News Power Sector News DERC will take final call on power tariff hike: Dikshit

DERC will take final call on power tariff hike: Dikshit

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DERCWith the private discoms strongly pitching for hike in tariff, Delhi Chief Minister Sheila Dikshit  said power regulator DERC will take a final decision on the issue and the government will not play any role in the matter. "The DERC will decide about the tariff. It is in their domain. The government has nothing to do with it," Dikshit said after a meeting with Power Minister Harun Yusuf.

In the meeting, she reviewed the government's preparation in meeting the power demand during the peak summer months.

The Delhi Electricity Regulatory Commission (DERC) is currently in the process of finalising the annual tariff for the year 2011-12.

Citing severe liquidity crunch, Reliance Infrastructure- backed discoms BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd ( BYPL )) had last week said that they will not be able to sustain operation beyond May if financial help is not provided immediately.

Both discoms have been demanding a 60 per cent hike in tariff.

However, Power Minister Harun Yusuf had warned the discoms against resorting to "arm twisting" while seeking a hike in tariff, saying such behaviour will not be "tolerated".

In May last year, the city government had through a notification stalled DERC's decision to announce the annual tariff for 2010-11 till it re-examines the demands from discoms to increase the rates.

The DERC, which was making last minute preparations to announce the new tariff, after receiving the government directive had indicated that it had planned to cut down the tariff by 20 to 25 per cent as discoms would have a surplus of around Rs 4,000 crore if the existing tariff was not changed.

The government's notification was quashed by Delhi High court in February, describing the intervention as "absolutely unjustified, unwarranted, untenable".

Asked about the government's preparation for the summer months, Dikshit said there was no shortage of power in the city. "We have sufficient power to meet our demand."

Power department officials said the peak demand is expected to touch around 5,100 MW, while arrangements have been made to ensure availability of 5,300 MW. Currently, the demand fluctuates between 4,000 MW and 4,300 MW.

The officials said Bawana power plant, which has already missed several deadlines, is likely to start producing power from June, which will help in bridging the gap between the demand and supply.

They said two units of Bawana plant, having a production capacity of 500 MW, will start generation from June.

Source- Economic Times


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