The Delhi Electricity Regulatory Commission (DERC) has increased the power tariff up to 6 per cent in the national Capital. The hike will be effective from Monday. The AAP Government has decided to ask DERC to review its order. Both the Congress and the BJP are gearing up for another political battle to take on the AAP Government over the power hike. The tariff hike was reportedly necessitated as the Appellate Tribunal for Electricity had earlier instructed the DERC to bring power purchase adjustment cost (PPAC) within three weeks. The deadline set by the Appellate Authority is to expire on June 15.
DERC has approved 4 per cent hike for TPDDl, 6 per cent for two BSES and 5 per cent for New Delhi Municipal Council as PPAC. The TPDDl has sought up to 4 per cent hike as PPAC while BSES discoms have demanded 7 per cent-20 per cent hike. The PPAC will be calculated on overall bill. DERC has however, clarified that any spill over of the entitlement of PPAC during Financial Year 2014-15 will be “duly factored into the tariff calculation of FY 2015-16 so that the entire entitlement is recovered as far as possible” during that period. As per sources in the industry, Delhi discoms are owed Rs27,000 crore by the regulator on account of deferred payments (revenue gap).