As the Delhi Electricity Regulatory Commission (DERC) on Thursday for the first time since 2011 announced no hike in power rates for domestic consumers in the city at the end of its annual tariff determination process, Delhi Power Minister Satyendra Jain said on Thursday that the tariffs should have actually been reduced.
DERC chairperson PD Sudhakar said the new tariff structure will be applicable from October 1. Under the new tariff structure, while the rate slabs will remain same for the domestic consumers, residents of Cooperative Group Housing Societies (CGHS) will also have to pay bills according to the same slabs as other domestic consumers and will now be eligible for subsidies.
Earlier, the CGHS consumers had to pay a flat rate and due to absence of slabs, could not avail power subsidy announce by the Government.
Besides, the Commission has also allowed payment of Rs573 crores toward pension trust fund of Delhi Vidyut Board employees who retired before privatisation of the sector. “The matter is pending before court but the pension of former employees can’t be stopped. So it is a temporary measure and the amount will be adjusted as per the final decision by the courts,” Sudhakar said.
Giving the details behind retaining the existing power tariff, DERC officials said accumulated revenue gap which was around Rs14,000 crore by the end of Financial Year 2012-2013 has reduced to Rs12,000 crore till 2014.
The four DISCOMS (BRPl, BYPl, TPDDl and NDMC) had claimed Annual Revenue Requirement (ARR) of around Rs22,000 crores, of which approximately Rs19,000 crores has been approved by the DERC.
However, since revenue at existing tariff already exceeds the approved revenue requirement by around Rs450 crores (which will further liquidate the principal amount of accumulated revenue gap of around Rs12,000 crore), there seems to be no need for hike in tariff.
However, the DERC maintained that the consumers will continue to pay additional surcharge of 8 per cent on their bills for gradual liquidation of principal amount of the accumulated revenue gap (Rs12,000 crore).
Moreover, the Power Purchase Adjutment Cost (PPAC) shall also be continued to be levied as per June order of the Commission in compliance with Appellate Tribunal for Electricity (APTEl) order.
Reacting to the tariff announcement, Power Minsiter Jain said, “Though 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… The Government had conveyed its view to the DERC that in wake of reported findings of the Comptroller & Auditor General (C&AG) in the media, which have not been disputed by any concerned party so far, the electricity tariffs should be reduced.”
Jain further said the Government is also of the view that the Regulatory Assets being demanded by the DISCOMS are highly inflated and these should be completely scrapped by the DERC.
“The Government will continue to convey its views to the DERC so that people of Delhi get justice,” he added.