Delhi denizens breathe easy, no hike in power tariff

The much awaited electricity tariff order for the current financial year, issued by the Delhi Electricity Regulatory Commission (DERC) on Thursday, under constant pressure of Aam Aadmi Party government, completely turned down 18-21 per cent hike demanded by private power distributing companies and announced “no change in existing tariff”. 

In its audit, the power regulator claimed it discovered an estimated profit of Rs 453 crore by three DISCOMS in the city against over Rs 2,202 crore financial loss claimed by them in 2015-16.

“The commission has also undertaken work of physical verification of assets and billing audit which may lead to further reduction in the revenue gap during the subsequent years,” said the Chairman of DERC. DERC has <g data-gr-id="33">rationalised</g> the composite tariff of Group Housing Societies for supply at 11 <g data-gr-id="28">kv</g> and fixed at Rs 6 per unit, however, the individual consumers may claim <g data-gr-id="32">subsidy</g>.

The commission also pulled up DISCOMS for purchasing costly power from Anta, Auraiya, and Dadri stations without prior approval of the commission and claimed that audit of these records will further reduce the estimated loss of over Rs 12,000 claimed by DISCOMS. 

In the appeal before DERC, the three private DISCOMS had claimed an accumulated loss or revenue gap of around Rs 12,000 crore till the financial year 2013-14. In the petition before the power regulator. These three companies had estimated requirement of Rs 20,510 crore for <g data-gr-id="30">2015-16</g> but DERC found it highly inflated and approved the amount at Rs 17,984 crore and revenue from existing tariff at 18,438 <g data-gr-id="29">crore</g>.

Delhi government has welcomed the decision of no hike in power tariff but reiterated its demand to reduce the power tariff. “Though the DERC has not announced any hike in electricity tariffs, the government is of the firm view that tariffs should have been reduced,” said Satyendra Kumar Jain, Delhi’s Power Minister. 

“At first sight, it appears the DERC has kept the sentiments of the people of Delhi and their elected representatives in mind while deciding the tariff petitions of DISCOMS for the current financial year,” 

he added.