Delhi: Tariffs same, but power bills to go up marginally

Delhi chief minister and Aam Aadmi Party chief Arvind Kejriwal tweeted that this is the seventh consecutive year that Delhi residents have been spared a tariff hike.

Electricity bills in the national capital will increase by 2 percentage points from October 1, as the Delhi Electricity Regulatory Commission (DERC) on Thursday announced the new power tariff order for 2021-22.

Delhi has at least 5.5 million domestic power consumers. (Representational image/REUTERS)

In its order, DERC, like last year, kept all other rates such as per unit energy cost and fixed charges on the sanctioned load of every household constant. However, the pension trust surcharge was increased from 5% to 7%.

Delhi has at least 5.5 million domestic power consumers.

Apart from the goods and services tax, two surcharges are levied on every electricity bill in Delhi. These are the pension surcharge, which goes towards paying pension to former employees of power utilities before the electricity sector was decentralised, and the regulatory assets surcharge, which goes to power distribution companies (discoms) to make up for their revenue deficits. Both surcharges are levied on the fixed charges and energy charges of every electricity bill. Under the new order, the regulatory asset surcharge will remain unchanged at 8%.

“Only the pension surcharge has increased, and we had to impose this marginal hike because the government wrote to us that the pension amount under the revised schedule of the central Pay Commission has increased. So, there was no other alternative but to increase the surcharge. Everything else in the tariff order remains as it is. It is an equitable order,” said Hasnain.

Last year also, only the pension trust surcharge was increased from 3.8% to 5% with all other charges remaining unchanged.

Delhi chief minister and Aam Aadmi Party (AAP) chief Arvind Kejriwal tweeted that this is the seventh consecutive year that Delhi residents have been spared a tariff hike.

“Congratulations to the people of Delhi. For the seventh consecutive year, there has been no change in the cost of electricity in Delhi. At a time when the cost of power is skyrocketing in other states, Delhi residents are not only getting 24 hours electricity at cheaper rates, but are also getting free power up to 200 units,” Kejriwal tweeted in Hindi.

Power minister Satyendar Jain congratulated residents of the Capital after electricity tariff’s were left unchanged.

“This year no increase in tariff for any category. Congratulations Delhi,” Jain tweeted. He also attached a list of power tariff for different categories to show that it did not increase.

To be sure, the Delhi government marginally increased fixed charges in 2018.

However, after opposition from the residents bodies, the AAP government revised its power subsidy scheme in 2019, making power completely free for households consuming up to 200 units of electricity; and ₹800 monthly discount for those with a consumption of up to 400 units.

Government officials said the power subsidy for consumers 200 units and 400 units will continue.

DERC also introduced a new rule regarding digital payment of bills in its latest tariff order. “Digital payments have now been made mandatory for electricity bills higher than Rs. 20,000 except for domestic, agriculture and mushroom cultivation categories,” the order stated.

Ankita Kumar, a resident of L-Block Hauz Khaz, said at least the tariffs were not increased like it was done in other states. “My relatives and friends staying in Noida (Uttar Pradesh) and Gurugram (Haryana) always keep complaining about how electricity there is way too expensive compared to Delhi, and also the supply is erratic. So, we in Delhi are in a better position with cheap electricity and decent power supply,” she said.

Some residents, however, said that the Delhi government should offset the increase in pension surcharge instead of it being transferred to the consumers.

“The electricity bills will increase because of the increased the pension surcharge even though the per unit charges remain the same. The Delhi government should bear the cost of payment to the pensioners of the erstwhile Delhi Vidyut Board (DVB). They have slapped the consumers with ₹400 crore for paying a year’s pension to these employees. Nowhere else does it happen that citizens directly pay for the pension of a company. This is unfair,” said Saurabh Gandhi, secretary of United Residents of Delhi, an umbrella body of RWAs which is active in matters related to power in the city.

The Delhi Vidyut Board was disbanded in 2002, and the power sector was privatised, with three private companies taking over distribution of power in the national capital.

The power tariff for a financial year is usually announced by DERC before April. However, it was delayed this year due to the pandemic and retirement of Husnain’s predecessor, SS Chauhan.