'Delay in DERC public meet may lead to steep power tariff hike'

The power tariff revision process in the Delhi Electricity Regulatory Commission seems delayed with no signs of an early public hearing on the matter.

Experts say the delay in revision of tariffs will ultimately hit consumers as a higher hike may have to be ordered by the regulator to meet the revenue gap of private power distribution companies.

The Delhi Electricity Regulatory Commission (DERC) holds at least one public meeting a year, latest by June, to determine power tariff for domestic consumers.

Officials with the DERC agreed that the process of conducting a public hearing has been delayed this year. “We have to be particular and have to factor in all the elements leading up to the public hearing. We want it to be a foolproof procedure so that we can consider all the representations with high precision for fixing power tariffs,” a senior official said.

But the power experts said that if public hearing is delayed any further, consumers will be on the receiving end. “It is seen that when public hearing is delayed, the regulator has resorted to a higher hike in tariff to bridge the revenue gap of the private power distribution companies,” Parmod Deo, former chairman of the Central Electricity Regulator Commission, told Deccan Herald.

Sources said the DERC is mulling to hold the public meeting in July end. “If the public meeting is held in July,  the increase in tariff hike will come into force from September,” added Deo.

Last year, the public hearing took place on June 20 and 21, and the tariff was hiked by over 8 per cent by mid July. In 2013, the DERC conducted two public hearings in May and June and the tariff was revised by July end.

The Appellate Tribunal for Electricity regulations states: “It should be the endeavour of every state commission to ensure that the tariff for the financial year is decided before April 1.”