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Home News Power Sector News Electricity bills to go up 24.15% from July 1 in Delhi

Electricity bills to go up 24.15% from July 1 in Delhi

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DERCAs if rising inflation was not enough, households in Delhi will now face 24.15 per cent increase in their electricity bills for the third time this year. The Delhi Electricity Regulatory Commission (DERC) on 27-06-2012 allowed the private distribution companies to raise domestic tariff by 24.15 per cent from July 1. This would take electricity charges in the National Capital to Rs 5.17 for every unit from Rs 4.16 per unit now.

At the same time, commercial power tariffs would also up by 19.49 per cent and industrial sector users will have to pay 20.2 per cent more for their electricity.

The increase in electricity cost is because of rising prices of coal and natural gas. Due to shortage of domestic fuel, power companies are producing electricity from expensive imported fuel pushing prices northwards.

DERC has allowed fuel surcharge of 8 per cent to be imposed on tariffs for three distribution companies, Tata Delhi Power, BSES Rajdhani and BSES Yamuna, for 2012-13.

This hike would help the distribution companies to reduce their losses by around Rs 700 crore.

Delhi has seen slew of electricity price hikes in the past. In August 2011, DERC allowed companies to increase tariff by 22 per cent hike. This was followed by another five per cent in February 2012 and two per cent in May 2012. However, the tariff increase allowed last year was not enough to cover up the gap of Rs 6,000 crore incurred by three distribution utilities. They could cover only Rs 1,200 crore in the first year and remaining Rs 4,800 crore would be collected over next three years.

The three distribution companies – Tata Delhi Power, BSES Rajdhani and BSES Yamuna – had sought revision of 18 per cent, 20 per cent and 27 per cent, respectively, in electricity tariffs.

 

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