Delhi resident associations urge DERC to reconsider hike in power rates

Urging the Delhi Electricity Regulatory Commission(DERC) to reconsider the recent hike in power purchase adjustment costs (PPAC), residents’ welfare associations (RWAs) in the city on Thursday said the move was meant to solely benefit private distribution companies (discoms)

Urging the Delhi Electricity Regulatory Commission(DERC) to reconsider the recent hike in power purchase adjustment costs (PPAC), residents’ welfare associations (RWAs) in the city on Thursday said the move was meant to solely benefit private distribution companies (discoms). They also demanded that the power regulatory authority release the formula for its calculation.

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In a press conference held on Thursday, United Residents of Delhi (URD), an umbrella group of RWAs, general secretary Saurabh Gandhi said the PPAC was only imposed in areas that came under the three discoms, and not in the New Delhi Municipal Council (NDMC) area, clearly indicating that this hike was meant to benefit the discoms.

“The order for hike in PPAC was issued only to give benefit to private companies. The RWAs have been continuously questioning this formula and asking that it be changed. It should be applied only on fuel costs and all suggestions on other increases should be heard only once a year.. The government should not pass this burden on to the public,” he said.

The DERC last month allowed the discoms to hike PPAC by 2-6% hike.

BS Vohra, of the East Delhi RWA United Front, said the 6% hike in PPAC was “too much”.

URD secretary HM Sharma said there should be a CAG audit of discoms so that the real picture regarding power tariffs and various charges associated with it can emerge.