Delhi’s power regulator might be headed for a direct confrontation with the newly-formed AAP Government as the Delhi Electricity Regulatory Commission (DERC) on Thursday maintained that it is an autonomous body and a decision on any power tariff hike in the Capital can only be taken after a prudence audit and an analysis of the petitions submitted by the discoms.
Sources said the Delhi Government, on the other hand, is most likely to use Section 108 of the Electricity Act, 2003 while issuing a directive to the DERC in order to halt any hike in tariffs until the CAG audit of the three power distribution companies is completed.
If it does so, it will be the second time since the year 2010 that such a directive will be issued by the Delhi Government. In first case, the DERC had even sought opinion form the Solicitor General of India for announcing power tariffs in the city.
Reacting to Power Minister Satyendra Jain’s announcement of opposing revision of power tariffs until results of the CAG audit are out, the DERC said it is a quasi-judicial body and that matters related to tariff revision hardly fall under “policy matters” owing to which the Delhi Government can at the most issue a recommendation to it.
However, officials in the Power Department said that a directive can be issued to the DERC under Section 108 of the Electricity Act. When The Pioneer questioned the power regulator about this provision in the Act, it said, “Tariff fixation is outside the area of “policy matters”. Even if directions are issued by the Government after invoking this Section, they are not really binding on the regulator.”
The DERC also stated that it is open to recommendations from “everyone”, but the final call will be taken by the commission only after going through the data, suggestions and objections of all stakeholders.
“So far we have not received any letter from the Delhi Government. If we receive any such letter from the Government asking us not to hike tariffs, in case there is any at all, we will consider it with utmost importance. Even consumers can send us recommendations and they always do so, most of the time they are opposing a hike. We consider and analyze everyone’s suggestions, and only after that a decision is taken,” said JP Singh, member, DERC.
If the Government uses this legal aspect (Section 108 of EA, 2003), then it would be the second time in the Capital. It is pertinent to note that a similar situation had occurred in May, 2010 when Congress’ Sheila Dikshit was Delhi Chief Minister. The power department, then under her, had issued a directive to the DERC just a day before it was to announce revised power tariffs in the Capital. The DERC later sought the opinion of the Solicitor General of India who had given it a go ahead to announce power tariffs.