Delhi RWAs demand reduction in fixed costs on power bills, audit of discoms

Many, including those belonging to affluent colonies, said they will not opt out of the power subsidy scheme, which chief minister Arvind Kejriwal made optional last week, with the proposed change coming into effect from October 1

Day One of a two-day public hearing by the Delhi Electricity Regulatory Commission (DERC), to decide the power tariff for the financial year 2022-23, on Thursday saw the participation of at least 20 residents’ welfare associations (RWAs), which unanimously urged the power regulator to get the Delhi government to start contributing at least 50% of the pension surcharge that is currently levied on every monthly electricity bill.

HT was the first to report on May 6 that subsidy will not be automatically applied to every eligible electricity bill as it is currently being done. Rather, one will have to opt for it in order to avail of the scheme. (Representational image/HT Archive)

Many, including those belonging to affluent colonies, also said they will not opt out of the power subsidy scheme, which chief minister Arvind Kejriwal made optional last week, with the proposed change coming into effect from October 1.

A pension trust surcharge of 7% is a fixed component on every electricity bill and the money thus collected from consumers is meant for paying the pensions of employees who retired from the Delhi Vidyut Board (DVB), which was the sole discom in Delhi before the privatisation of the power sector.

On September 30 last year, the DERC had kept all other rates on the electricity bill the same, except for the pension trust surcharge, which was increased from 5% to 7%. In 2020, it was increased to 5% from 3.8%.

“Last year alone, the amount targeted to be collected through the pension surcharge was nearly ₹400 crore and it just keeps increasing every year. Full recovery of DVB outstanding bills is urgently required in view of the huge pension liability thrust upon consumers on account of a tripartite agreement, to which the consumer was not even a party. The Delhi government was the guarantor for the payment of pension,” said Saurabh Gandhi, general secretary of United Residents of Delhi (URD), a conglomerate of more than 1,000 small RWAs across Delhi

“Also, different state governments are now adopting LIC pension scheme (Atal Pension Scheme) for their employees. The Delhi government should take over the pension liabilities, instead of thrusting it upon the consumers as pension surcharge,” Gandhi said.

Delhi government spokespersons did not respond to requests seeking comment.

There were also those who opposed Kejriwal’s announcement of May 5 when he said the power subsidy will be made optional from October 1.

HT was the first to report on May 6 that subsidy will not be automatically applied to every eligible electricity bill as it is currently being done. Rather, one will have to opt for it in order to avail of the scheme.

“Optional power subsidy will further disenfranchise the rich. This announcement by the Delhi government is an emotional blackmail card. The money saved will be further doled out to cultivate targeted vote banks in the name of development. I will not opt out as my money will be used against me to cultivate and strengthen the vote bank of the Aam Aadmi Party (AAP). The process should rather be that if people do not call on a dedicated number or give a written application, then the subsidy would continue,” said Rajiv Kakria, convener of Save Our City Campaign and a member of Greater Kaialsh-1 RWA.

BS Vohra, who heads the East Delhi RWA Joint Front, also said he and several other residents, many of them from affluent colonies of east Delhi, have decided to not opt out of the power subsidy.

Sanjay Gupta, of Model Town RWA, urged the DERC to allow discoms to be audited and also pension trust surcharge.

Discoms on their part said there has been no significant tariff hike in Delhi since 2014. In the years since then, their power purchase costs have increased by over 300%, while retail power tariff rose by just 91%. “The savings by way of AT&C losses have provided a cushion to the Delhi discoms to ensure business continuity despite non-cost reflective tariffs over the years. Due to non-cost reflective tariffs, revenue gap (regulatory assets) of the Delhi discoms have crossed a milestone mark of over ₹50,000 crore to reach ₹51,646 crore, as on March 31, 2020,” said a discom official.