In a stern response to the Delhi Government which questioned the basis of tariff revisions resulting in “steep hikes” between 2011 and 2014, the Delhi Electricity Regulatory Commission (DERC) has said it is not answerable to the AAP Government and that any dispute should be challenged only through legal course of action.
It further raised doubts on how the Government, which itself has 49 per cent stake in all the discoms, was not aware of their affairs. The power regulator, however, outright denied of mentioning anything related to the summoning of its chief in the Delhi Assembly as demanded by the MlAs.
The DERC in its letter sent to the Delhi Government on Monday reminded the Government that it was “a quasi-judicial autonomous and statutory institution set up under the Electricity Act, 2003 and is exclusively mandated to fix tariff and take up all related areas of functioning as prescribed under Section 86 of the Act.” It further stated that if the Government had any doubts or dispute about the power regulator’s functioning (read tariff fixation), it could appeal before the Appellate Tribunal For Electricity (APTEl) challenge the APTEl order in the Supreme Court.
The Government’s letter which DERC officials termed “unprofessional” and “inappropriate”, had indirectly alleged that the commission favoured the private distribution companies. “Going by the data and energy supply position for the period, ordinarily, there should have been a case for reduction in tariff between 2011 and 2014.
From financial year 2011 onwards, the average yearly rate of electricity purchased by the discoms (other than long-term purchases) have been consistently much higher, often by more than 40 to 50 per cent as compared to the average yearly rate of electricity sold on the Indian Energy Exchange. This casts a doubt on the genuineness of the electricity purchases claimed by the discoms,” read the letter sent to the DERC on March 19.
Reacting to this, the power regulator, in turn, questioned the Government’s stand as it itself is a 49 per cent stakeholder in all the discoms. “The Delhi Government has 49 per cent share holding in all distribution companies and its high officials are directors on the board of these companies.
The Government is, therefore expected and assumed to be familiar with the affairs of the discoms. It may then not be proper for any stakeholder (such as the Government) to raise questions of the DERC regarding its quasi-judicial functioning by administrative recourse,” said the letter.
Speaking to The Pioneer, DERC Chairperson PD Sudhakar said, “Every action of the Commission is made well under the ambit of the law. We consider observations, suggestions and objections of all stakeholders during tariff fixation. It is not fair to all the stakeholders for DERC to respond to specific allegations in respect of the exercise of tariff fixation because these have financial implications for all concerned. We know our responsibility well which is to protect the interests of the consumers and ensure tariffs are just.”
When asked about MlAs demanding the summoning of the DERC chief, Sudhakar said, “The Delhi Government has to give us in a formal letter if it wants to summon anybody from DERC and the Commission, so far, has not received any such communication. Hence, there is no question about us talking about it. The letter nowhere mentions whether I would or would not appear in the Delhi Assembly.”