Power tariff rates in Delhi are likely to go down by four to six per cent as the fuel surcharge ‘power purchase adjustment cost’ (PPAC) levied on the power tariff has lapsed on March 15. The private Discoms cannot impose any fuel surcharge on the electricity bills further. On the other hand, Delhi BJP leader Vijendra Gupta claimed that Centre has decided to do away with the PPAC on power tariffs.
DERC had restored PPAC surcharge following a directive from the Appellate Tribunal for Electricity (APTEl) since June 15, 2015. Delhiites had been shelling out four to six per cent of fuel surcharge for the past nine months as BSES, Rajdhani Power limited and Yamuna Power limited have been charging six per cent PPAC and Tata Power Delhi Distribution four per cent PPAC on total bills. The power adjustment cost agreement for charging fuel surcharge expired on March 15 as the private discoms failed to file their petitions in this regard before the DERC.
Sources said that the private power companies are going to file their fresh petitions before the new DERC chief by the month-end. Once the DERC takes a final call on these petitions, then only the discoms can impose fuel surcharge on power bills.
After March 31, the discoms are expecting annual power tariff revision pending since 2014. Chief Minister Arvind Kejriwal’s stiff resistance to the discoms proposed move to increase power tariffs had forced the DERC not to effect any fresh hike in electricity bills in 2015.
Soon after forming the AAP Government in Delhi, Kejriwal had granted 50 per cent subsidy on power tariffs to consumers consuming up to 400 units of electricity every month. The power subsidy had been costing the exchequer about Rs 1,400 crore annually. There are indications that the Government is going to continue the power subsidy in the upcoming Budget for 2016-17 fiscal. The power subsidy is likely to cost Rs 16,00 crore to the state exchequer in the next fiscal.
Meanwhile, BJP MlA and leader of Opposition in the Delhi Assembly Vijender Gupta has welcomed decision of the Central Government to do away with PPAC on Delhi’s electricity consumers with effect from Wednesday. Gupta said that this will lighten their financial liability and this will provide four to six per-cent relief in the bills to the consumers.