The tussle between the Delhi government and the DERC began on May 4 when the former stepped in at the eleventh hour to stop the tariff order 2010-2011 from being released. DERC sources said the order was bringing in reduction in tariff across all categories. Delhi's discoms claimed they had suffered heavy losses over the last three years and appealed to the CM to intervene. But the DERC maintains that the discoms have consistently made healthy profits and hence tariff could be cut to absorb some of it.
The CM was also asked to respond to the DERC's observation that the discoms had "lied completely" about their financial position in the representation made to the government. "I do not think they lied to us," she replied. The CM also said that Delhi Chief Secretary Rakesh Mehta was poring over "statutory advice" filed by the DERC last week, in which the regulator has said that it retains the right to release the tariff order.
However, the Chief Minister said she does not want to intervene in the DERC's functioning and just wanted to ensure the regulator takes into account all views while fixing tariff. "The discoms approached us with a representation and we just told the DERC to look into their grievances," she said.
Source- Indian Express