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HindustanTimes Fri,24 Oct 2014

Discoms want to levy more charges

Neelam Pandey, Hindustan Times  New Delhi, March 03, 2013
First Published: 00:05 IST(3/3/2013) | Last Updated: 01:50 IST(3/3/2013)

Your power bills might go straight through the roof if petitions by the three power distribution companies on the tariff are cleared by the Delhi Electricity Regulatory Commission (DERC).

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Apart from a basic annual increase in the tariff, the three power distribution companies — BSES Rajdhani Power Limited, BSES Yamuna Power Limited and Tata Power Delhi Distribution Limited (TPDDL) — have asked the commission for a full power purchase adjustment charges (PPAC).

This means that apart from the yearly increase of 13% sought by BYPL, which supplies electricity to east and central Delhi, 2% by BRPL (south and west Delhi) and 6.6% sought by TPDDL, which supplies power to north Delhi, they have also asked for a quarterly increase depending on the rate at which they have procured power.

Discoms have taken the plea that 17 states have already adopted the PPAC model in determining the tariff. DERC, which is reviewing the petitions, is yet to take a call on the matter.

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“We had adopted the PPAC mechanism last year but this year we are reviewing it. If full PPAC is given to the discoms, it can increase power bills to the tune of 25% to 30%. For instance, the fixed tariff would be 13% in case of BYPL for the year and an additional 10% increase would mean in reality the tariff would be 26%. This will burden the consumers,” said a senior DERC official.

According to discoms, a fixed power tariff is unacceptable as during the course of a year power purchase costs keep varying. And many a time, the purchase cost is much more than what is fixed by the DERC.

“This is why we want a full PPAC so that if we buy costly power, we can charge that amount to the consumers in the next quarter. DERC had adopted this mechanism last year,” said a discom official.

Sources said the DERC is planning to come up with a comprehensive fixed tariff so that no additional cost has to be taken into consideration. Discoms have cited increase in cost of power purchase and their failure to recover dues for the need to raise tariff. The new tariffs will be applicable from July 1.


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