Delhi power regulator begins tariff revision process, discoms call it delaying tactic
Sources said that an increase in tariff this year too is unlikely as the commission is functioning with just one member. The position of chairperson and a member have been lying vacant in the DERC for nearly a year.delhi Updated: Jun 10, 2017 16:45 IST
The Delhi Electricity Regulatory Commission (DERC) has started the annual exercise of revising power tariffs.
The power regulator has invited suggestions and objections on the petitions filed by distribution companies from the public and other stakeholders. “We have begun the process of analysing the expenses and revenue requirement stated by power utilities including the discoms. People can send in their comments or suggestions by June 27 after which next month a public hearing will be held,” a DERC official said.
According to the petitions of discoms made public by the power regulator, all three utilities – BSES Yamuna Power Limited (BYPL), BSES Rajdhani Power Limited (BRPL) and Tata Power Delhi Distribution Limited (TPDDL) – together have quoted an aggregate revenue requirement (ARR) of Rs 21,624 crore.
The BRPL has given an ARR of Rs 9,052 crore, TPDDL has demanded Rs 7,680 crore and BYPL Rs 4,892 crore.
The discoms, however, alleged that the power regulator has used their petitions from last year to determine tariffs this year.
“As per the new multi-year tariff regulations, the DERC is yet to finalise the ‘Business Plan Regulations’ without which discoms cannot submit the petitions for this year. But the regulator has gone ahead with the tariff revision process for 2017-18 on the basis of financial figures reported in ARR petitions filed in April 2016,” discom officials said.
As keeping power tariffs low has been a key poll promise of the Aam Aadmi Party government, electricity charges have not been hiked in Delhi in the last two years.
Sources said that an increase in tariff this year too is unlikely as the commission is functioning with just one member. The position of chairperson and a member have been lying vacant in the DERC for nearly a year.
Data with the regulator reveals that the expected revenue gap on a standalone basis for 2017-18 of the BSES discoms is around Rs 1,600 crore. For TPDDL the amount is around Rs 1,300 crore.
At the moment, electricity rates start at Rs 4 per unit for consumption of up to 200 units, going up to Rs 5.80-5.90 per unit for 200-400 units, Rs 7.30 per unit for 400-800 units and higher for more consumption. The exact rates vary according to the electricity provider.
Under the Delhi government’s subsidy scheme, those who consume up to 400 units get a flat 50% off on their power bills.