Delhi Electricity Regulatory Commission (DERC) is unlikely to raise power tariff in Delhi, thanks to the enormous pressure exerted by the Arvind Kejriwal Government against any hike and CAG’s draft report on discoms’ irregularities.
Sources in the DERC claimed that since DERC chief P Sudhakar’s tenure will end in February next year, he is trying to keep himself out of any controversy pertaining to hike in power tariff. After examining annual revenue receipts of all three discoms and holding extensive public hearings and a series of consultations with different stakeholders, DERC has reportedly agreed not to make any changes in the current power tariff structure. The commission had earlier indicated that it may announce new power tariff structure by next week.
While the DERC had time and again maintained that new tariff structure was required to meet the growing power purchase cost, the Arvind Kejriwal Government had stuck to its guns and warned if power tariff was increased, it would cancel the agreements with discoms and invite new players for electricity distribution. Another prominent reason for the DERC’s reported move is being linked to the CAG’s preliminary report suggesting that the three discoms had inflated their dues to be recovered from customers by almost `8,000 crore. In its report, the CAG had claimed that there was scope for reduction in power tariff.
The CAG report is seen as ammunition for Kejriwal, who quickly announced that once the audit is complete, power tariff in the city will be reduced.
The power tariff was a major issue for the AAP during the Delhi Assembly polls. The Kejriwal Government had in February announced a 50 per cent subsidy on monthly power consumption of up to 400 units till it received the CAG report on financial condition of the discoms.
The city has seen a series of hikes in power tariff in the past two years. The tariff was hiked by 22 per cent in 2011 followed by five per cent rise in February 2012. It was hiked by up to three per cent in February 2013 and again by five per cent in August 2013. It was increased by up to 7 per cent in November last year.