Govt pulls up DERC over appointment of consultant

The Delhi government in an audit has pulled up the Delhi Electricity Regulatory Commission (DERC) for allegedly giving undue favour in the appointment of a consultant for preparing the multi-year tariff regulation from 2006-07 to 2010-10.

As per the report (HT has a copy), the auditors have pointed out that DERC had invited bids to appoint consultant for preparing a multi-year framework in line with the Electricity Act 2003 and tariff policy.

Under this, weightage was given to technical score over financial condition to allegedly favour PriceWaterhouse Cooper (P) Ltd (PwC).

"A weightage of 65% to technical score and 35% to financial was mentioned in the regulations. Departure from the above for assigning weightage was made to favour M/s PwC," the report says.

It adds, "There are clear directions of the Central Vigilance Commission (CVC) for the award of contract. Once the bidder qualified in technical bid, the contract was to be awarded to the lowest among the successful bidders. The contract was awarded to the highest bidders at R30 lakh. The lowest bid was of Rs 17.26 lakh.

There was a loss of Rs 12.74 lakh by not awarding the contract to the lowest."

Besides, due process was flouted in the appointment of a consultant for the multi-year tariff regulation for 2011-15. All such appointments together caused a loss of R25 lakh to the exchequer.

DERC member JP Singh said, "We have already replied. No undue favour has been given to any party." After scrutinising the DERC's reply, a final report will be tabled.

The regulatory body has also been pulled up by the auditors, while making appointment for tariff determination of 2011-12.

Also, instead of going for open tender, DERC had opted for limited tender enquiry.

A PwC spokesperson said, "We deny the allegations or insinuation of undue favour being shown to PwC by the DERC."