In order to “restore the schedule” of annual power tariff revision and ensuring that the new rates are implemented from April next year, the Delhi Electricity Regulatory Commission (DERC) has proposed to extend the Multi Year Tariff (MYT) Regulations, 2011 by another year. The existing MYT Regulations, 2011 which provides the power regulator with a framework for tariff determination is set to expire in March, 2015.
Power tariff revision for the next fiscal (2015-16) is, therefore, going to be decided on the same guidelines as the existing ones. These regulations have been in place since 2012 and were used for three consecutive tariff revisions in the national Capital. “We are going to extend the MYT Regulations, which were meant for the control period of 2012-15 by another year. Our main aim is to bring in the new tariff cycle by April next year,” said PD Sudhakar, Chairman, DERC.
In the past three years, power tariff revision in the city has been delayed by several months for various reasons and the move is expected to help in matching up the official commencement of a financial year. “Ideally, the announcement on new power tariffs should be done by March so that the rates can be implemented by April 1. This will also help the distribution companies to maintain proper accounts as the fiscal year begins from April. We want to restore the schedule so that the quarterly power purchase adjustment costs (PPAC) are implemented on time and consumers don’t get a tariff shock with frequent hikes,” said JP Singh, member, DERC.
To pass the proposal of the extension, the power regulator had invited comments and objections from stakeholders. “We have received various suggestions and objections on the proposal. Next, we are going to hold a public hearing on the issue on September 30. The matter will be discussed at length with the discoms, gencos and the Delhi Government during the hearing,” added Sudhakar.
In the meantime, the power watchdog is going to rope in a consultant to work on the new regulations for the MYT for discoms BSES Rajdhani, BSES Yamuna, NDPl and NDMC. The new regulations are expected to be out only by next year and will be implemented for a period of three years - from 2016-18. “The new regulations would have certain proposals. For instance, it is proposed that any financial loss on account of underperformance with respect to AT&C loss level targets shall be to the licencee’s account, though the discoms will be eligible for higher return on equity for achieving lower AT&C loss level than specified in the loss-level trajectory. The regulations also have proposals listed for generation and transmission,” said Singh.
Earlier, in an order on May 10, 2011, DERC had extended the MYT regulations and the control period for another year up to March 31, 2012, following which the MYT regulations for the second control period were to be notified. It was in 2012 that the MYT Regulations, 2011 were implemented to last till March 2015.