Autonomous power regulator, Delhi Electricity Regulatory Commission’s overnight decision to roll back the power tariff hike of up to seven per cent that it imposed on Thursday evening, raised many eyebrows in the National Capital on Friday.
Explaining the rationale behind the sudden move, the DERC said it was because of “last minute data” provided by the National Thermal Power Corporation (NTPC) which is under the Central Government.
Facing flak from all quarters for revising tariffs ahead of Assembly polls, the DERC said it will now re-examine all the petitions submitted by the discoms for the Power Purchase Adjustment Cost (PPAC).
The DERC said the hike was rolled back “realising” that a number of power generation companies, including NTPC, which supply electricity to the city, provided only part information about price of fuel such as coal and gas.
DERC chairperson PD Sudhakar said additional information on cost of production of power from coal and gas-based power generating stations has been sought and a fresh decision on tariff would be taken within two weeks after examining the details.
Insiders say that the hike in PPAC has been put on hold till the Assembly polls. The decision to withdraw the hike has put a question mark over the autonomous status of the body. The question that everyone wants answered is what prompted the DERC to jack up power tariff by cutting oil subsidy and then put it on hold after it was asked to explain the rationale behind it.
The purported hike in power bills has created a political storm and an embarrassed lieutenant-Governor Jung and the political class, especially the BJP, moved quickly to undo the damage as it could have dented its image at a time when elections are round the corner in the Capital.
The DERC’s decision to announce PPAC and then withdraw it within 24 hours has raised a big question mark over its autonomous status as people are questioning whether this body is really autonomous or working at the behest of the ruling party. This is not the first time that DERC has withdrawn its own order. Some officials said that the revision of PPAC was due and it should have been implemented by November 1, while some said that the DERC deliberately announced the hike and then withdrew it within 12 hours to put BJP leaders in the dock.
“Why did the commission announce the hike in PPAC and then withdraw it within 24 hoursIJ Was the announcement made with the intention of helping discomsIJ It also reflects that the DERC has not done its homework properly. If the clearance from NTPC was mandatory, then why did the DERC not take clearance before announcing hike in PPACIJ This act of the commission raises suspicions over its autonomous status and it also raises questions whether the political class was behind it,” said officials.
Earlier, the commission’s former chairman Vijender Singh had notified a reduction in power tariffs in Delhi in 2011 but it was not enforced as then Chief Minister Sheila Dikshit had reportedly opposed the DERC move to benefit the power discoms. This incident also raised questions over the autonomy of the commission. The incident also exposed the connivance between power discoms and the State Government over the power tariff issue.