Power tariff in the national Capital is set to get another hike by June-end. The Delhi Electricity Regulatory Commission (DERC) has indicated that the existing tariff might be increased in order to reduce the financial deficit of over Rs7,000 crore. DERC Chairman PD Sudhakar said the tariff revision would be announced towards June end, public hearing for which is likely to start later this month. Notwithstanding the demands from political circle to slash the existing power tariff, he said it was practically impossible to reduce the electricity charges and said that the commission was in the process of assessing the petitions of the private discoms who have demanded an average increase of 15 per cent in the power tariff.
Speaking to The Pioneer, Sudhakar ruled out any possibility of reducing the power charges and said that public hearing on tariff revision would be held latest by May-end. Explaining about the rare chances of a reduction in power rates, he said, “Recently, private stakeholders have given us a report in which they have projected an accumulated deficit of over Rs19,500 crore. And, if after analysis, this comes out to be true then a hike in power tariff is inevitable.” However, as per the DERC, the accumulated deficit was just over Rs7,000 crore till March 11 this year.
Sudhakar added that the petitions have been received by DERC and their assessment will be completed soon. The tariff increase demanded by BSES Rajdhani Power limited (BRPl) to meet the existing revenue gap is 21.72 per cent. While Tata Power Delhi Distribution limited (TPDDl) has quoted 11.02 per cent, BSES Yamuna Power limited (BYPl) has demanded the maximum hike of 51.17 per cent. The New Delhi Municipal Council (NDMC), which supplies electricity to the lutyen’s Delhi, has sought a tariff hike of 20 per cent. The total revenue requirement, for the financial year 2013-14, stated by Delhi Transco limited (DTl) is Rs2,031.35 crore.
With a humongous principal amount waiting to be covered, the DERC till now claims to have been able to recover only the interest part of the deficit. The accumulated deficit, according to DERC and the discoms, was a result of no tariff revision in the first six years after privatisation of power in the Capital. “The power tariffs should have been increased, even if by a margin, from fiscal 2006 to 2011. If that was the scenario then we would not have to make hikes of around 25 per cent which people find to be a steep rise. Had all complications been thoroughly analysed and dealt with from the beginning, the deficit would not have reached to such an uncontrollable amount,” the DERC chairman said. Notably, power tariff in Delhi was increased after a gap of six years in 2011 by 22 per cent and in 2012 by 24 per cent.
Sudhakar also attributed the increase in power tariff to the steep rise in the cost of power purchasing. “Nearly 80 per cent of the power tariff comprises purchase cost by various distribution companies which they have to pay to the sources from where they procure electricity. These utilities take huge loans for purchasing power,” he said.
Private discoms also claimed that power tariff in Delhi in the past five years has increased by 65 per cent, whereas power and transmission rates for them have gone up by 300 per cent. They, therefore, are demanding higher rates so that adequate power can be bought to ensure uninterrupted electricity supply particularly when the peak power demand is expected to cross the 6,000 MW mark this year.