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Will Delhi pay more for power?

delhi Updated: Sep 30, 2008 00:38 IST
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Whether Delhiites will have to pay more for power from next year will be decided on October 1. That day the Appellate Tribunal for Electricity (ATE) hears the petition of two city-based private power distribution companies (distcoms) challenging a tariff order passed in February by the Delhi Electricity Regulatory Commission (DERC).

The distcoms — BYPL and BRPL — have challenged the tariff order on the grounds it has resulted in a revenue shortfall of Rs 2,000crore to them after the regulator disallowed them the expense. The BSES distcoms had filed a petition challenging the order on March 23.

DERC sources said if the appellate tribunal decides in distcoms’ favour, it would result in a tariff hike of up to 40 per cent. This would mean an increase of Rs3 per unit in your electricity bill.

Distcom sources said they challenged the February tariff order as the DERC had disallowed the capital expenditure and power purchase cost to the tune of Rs2,000crore on the ground they were “not correct.”

While in one instance, BSES distcoms have sought approval for investing Rs900crore to upgrade its infrastructure without getting a mandatory completion certificate from the electricity inspector, in another case the regulator had disallowed Rs500crore after it found the distcom had tried to pass on the profit to their parent company after purchasing capital goods from them at a higher cost.

On February 23, DERC had announced a hike in power tariff for 2008-09 by 5 paise per unit. This hike was negated the very next day after the Delhi government decided to cover the increase by announcing a subsidy.

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