Power tariff hiked up to 6%

Power tariff hiked up to 6%

Starting Monday, Delhiites will have to shell out more for their power consumption as the Delhi Electricity Regulatory Commission (DERC) on Friday hiked the tariffs by up to 6 per cent.

The city government has slammed the increase in the power tariffs saying that the DERC should wait for the report of the Comptroller and Auditor General (CAG) before taking any decision on the tariffs.

While people who have BSES Yamuna and Rajdhani connection will have to pay six per cent more, NDPL consumers will have to pay four per cent more, according to revised DERC tariffs.

And those living in the NDMC area have to pay five per cent more.

So for the first 400 units, BSES consumers will have to pay Rs 1,477.64 while NDPL consumers will have to shell out Rs 1,449.76.

The Delhi government does not agree with the decision of the Delhi Electricity Regulatory Commission.

Govt wants review
“The government will seek a review of the DERC order and will convey its disagreement to the commission in writing,” said the city government in a statement.

“The government has also decided to seek opinion for taking legal recourse against this decision, which in its view is uncalled for, since no financial burden should be passed on to consumers till issues arising out of the functioning of power distribution companies are sorted out,” it added.

The power discoms sought a hike according to the power purchase adjustment.
The Power Purchase Cost Adjustment Charges (PPAC) is a surcharge levied in order to compensate the discoms for variations in the market-driven fuel costs (additional costs on account of increase in coal and gas prices).

Delhi is not the only city that has a PPAC mechanism. In India, over 21 states have the PPAC.

According to DERC’s staff paper, Delhi discoms are owed Rs 27,000 crore by the regulator on account of deferred payments (revenue gap), said a source.

“Timely PPAC is a requirement under the Electricity Act, DERC’s own tariff orders APTEL orders. Central Electricity Regulatory Commission (CERC) allows central PSU gencos and trancos PPAC on a monthly basis,” the source added.

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