The Arvind Kejriwal Government has written to Delhi Electricity Regulatory Commission (DERC) seeking explanation as to how they allowed the power tariff hike between 2011 and 2014 despite the fact that Aggregate Technical and Commercial (AT&C) losses came down subsequently.
Government’s Power Department has also sought to know from DERC whether investments made by three discoms for upgrading the distribution network, particularly purchasing of cables, transformers, and other electrical equipments, were genuine or inflated.
Top sources told The Pioneer that Delhi Government’s Power Department has written to DERC and sought explanation from these points that despite declining AT&C losses, why the discoms were allowed to increase power tariff between 2011 and 2014 and whether the power regulator has did any scrutiny of investment made by three discoms after privatisation and where three discoms were making investment.
The Arvind Kejriwal Government has appointed former DERC chairman Brijender Singh to bring a White Paper on the power situation in three months.
It is stated that private discoms had made crores in upgradation of distribution network in Delhi and most of the investment made in their subsidiaries company.
“In 2008, DERC order in which the two companies BRPl and BSES Yamuna Power limited (BYPl) showed they purchased equipment worth Rs1,428 crore from another group company. But the DERC found that this equipment was purchased at Rs850 crore from others. Why could not the discoms purchase this equipment directlyIJ It means the two discoms artificially increased their expenses. In fact, two distribution companies of BSES are notorious for filing exaggerated ARRs. For instance in 2004-05, BRPl claimed Rs800 crores as capital investments. Of this, the DERC cleared only Rs525 crore. For the same year, BYPl claimed Rs700 crore but the DERC cleared only Rs416 crore. Tata-owned North Delhi Power limited (NDPl), in contrast, claimed Rs328 crore — all of which was cleared,” sources said.