Those in hope of getting a 50 per cent reduction in power tariffs through the subsidy implemented by CM-designate Arvind Kejriwal will be able to reap the benefits at the existing rates only for around four months. The reason is an inevitable power tariff hike which the Delhi Electricity Regulatory Commission (DERC) is likely to implement by June-July. By March, the power regulator is going to issue a notification to formally begin the process of annual power tariff revision.
As promised by Kejriwal and his AAP, those who consume up to 400 units will get a subsidy of 50 per cent on their bills. But the catch here is that electricity rates are going to be revised
in about four months from now and hence, even if the subsidy continues, people will anyway have to shell out more money than now. “We have started receiving the Annual Revenue Requirement (ARR) submissions by the discoms. A notification in the regard of tariff revision will be issued by next month,” said PD Sudhakar, chairman, DERC.
If one goes by the calculations provided by power distribution companies, any tariff lower than Rs3-Rs2.8 per unit is impossible for the Delhi’s State budget to bear. Power experts believe, given the grim situation of the overall power sector in the country and the Capital, not going for an increase would only mean piling up on the regulatory assets. It is pertinent to note that the DERC in the last six months had not levied the
quarterly Power Purchase Adjustment Cost (PPAC) for two consecutive quarters — July to September and October to December.
Among the distribution companies, Tata Power (TPDDl) has demanded 8.9 per cent as PPAC in the last quarter, BSES Rajdhani (BRPl) has asked for around 8 per cent and for BSES Yamuna (BYPl) it is around 18 per cent. The PPACs for the three discoms for August to October was withdrawn by the DERC within 24 hours after announcing them. “It is likely that some amount of PPAC will be merged in the new tariff order. The fiscal prudence audit of the discoms is on,” said a member of the DERC. Even in their ARR, the discoms have cited a hike of 15 per cent-20 per cent.
The power rates were last hiked in July 2014, although it did not reflect in the bills of consumers. Presently, there are five slabs for power rates. For up to 200 units, the actual price is
Rs4 per unit while there is subsidy of Rs1.20 per unit. From 201 up to 400 units, the tariff is Rs5.95. In this slab too, there is a subsidy of 80 paise. From 401 to 800 power units, per unit cost is Rs7.30. The cost per unit for consumption between 801 and 1,200 units is Rs8.10. Beyond 1,200 units of
consumption, the tariff is Rs8.75 per unit.