Sheila Dikshit ready to deliver power tariff shock

Even as Delhi's electricity regulator is in the process of deciding whether to hike tariffs, chief minister Sheila Dikshit on Friday spoke in favour of increased rates. HT reports.

Even as Delhi's electricity regulator is in the process of deciding whether to hike tariffs, chief minister Sheila Dikshit on Friday spoke in favour of increased rates.

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“Tariffs have not been hiked in three-four years. Things have changed since then,” Dikshit told reporters at a function here. “We will have to consider factors like inflation and increase in the cost of living,” she said.

The Delhi Electricity Regulatory Commission (DERC) has been asked by the power distribution companies to hike rates by 60% in view of the increased cost of power. The new rates are expected to be announced in August.

Tariffs are fixed by the DERC, which is an autonomous, quasi-judicial body while the state government is a majority stakeholder in the private power companies.

Dikshit told HT that though it was not upto her government to determine tariffs, Delhiites should “learn to pay for what they consume and not expect someone else to foot the bill. The cost of power is not R2 like it used to be four years ago.”

On whether she would extend a subsidy if there is a steep hike, the CM said it would depend on what the DERC rolls out. Residents plan to go to DERC to submit their objections and protest at the public hearing on tariffs next week. “The discoms have fudged figures and the whole tariff determination process is a farce,” said Pankaj Aggarwal, secretary general of the Residents Welfare Associations’ Joint Front.