CM hints at fresh power tariff hike | delhi | Hindustan Times
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CM hints at fresh power tariff hike

delhi Updated: Oct 25, 2011 00:50 IST
HT Correspondent

After a recent steep hike in power tariff, bills are set to soar again. Stating that the cost of power procurement has gone up drastically, Delhi chief minister Sheila Dikshit on Monday indicated another hike in power tariff.

The power distribution companies have been demanding another hike in power tariff after the recent hike of 22% in August.

Dikshit said the rates in Delhi were much lower compared to most of the other states. When asked whether she was indicating that the tariff will go up, Dikshit said: “There could be. Yes, certainly.”

The Delhi Electricity Regulatory Commission (DERC) had dropped strong indication that there could be a further hike early next year after a steep hike in August. The distribution companies were not satisfied with the hike and have demanded further increase to sustain their operations. Earlier, they had been demanding a 60% increase in tariff.

Asked about Union finance minister Pranab Mukherjee’s comment at the National Development Council meeting that states should raise power tariff as distribution companies are facing financial difficulty, Dikshit said the statement reflected the real situation.

“The Centre has also admitted the reality. No government would like to increase burden of its people. But people will have to understand that cost of power has gone up,” Dikshit told media persons.

Recently, Planning Commission deputy chairman Montek Singh Ahluwalia had also said that some distribution firms have not raised tariffs for 10 years and their total losses are estimated to be Rs 70,000 crore.