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No power tariff hike till CAG audit of discoms: Delhi govt

No power tariff hike till CAG audit of discoms: Delhi govt
While Discoms are demanding 14 percent tariff hike on ground of power purchase adjustment.

When AAP convenor Arvind Kejriwal, who came to power on 28 December, 2013 and he fulfilled his promises on 1 January, 2014, reducing a 50 percent subsidy on power consumption up to 400 units on the existing DERC rates in Delhi. It is not enough Kejriwal had called up all power distribution
companies for CAG auditing.

Delhi’s power minister Satyendra Jain said the discoms’ demand for power tariff hike was unfair and the government would not allow the private companies to fleece the consumers. “We will not allow any monetary burden on consumers. The discoms’ demand is unfair. The government will ask the DERC not to increase the existing rates,” Jain said. The government’s decision can, however, lead to a fresh tussle as the government cannot issue direction to the Delhi Electricity Regulatory Commission as it is quasi-judicial body. Fixation of power tariff in the Capital is the sole discretion of the DERC after assessment of the discoms’ petitions.

Now, Discoms BSES( Rajdhani and Yamuna Power Limited and North Delhi Tata Power distribution companies are not ready for CAG auditing. The CAG told Delhi High Court that Discoms are not helping in audit processes.

During the meeting, the power department and the Delhi Jal Board officials made a detailed presentation on the proposal for subsidized water and power. Officials said the government will incur addition cost of Rs 1400 crore on power subsidy while 20 kiloliter of free water to every consumer will cost nearly Rs 300 to the department.

Sources said the power department officials also elaborated on the government’s plan to bid for coal blocks and set up its own power generation units in other states. They said the government’s move aimed at setting up its own coal-based power plants to meet the rising power demand of the city which had touched 6,000 MW in the last summer. In its manifesto, the AAP had promised to make Delhi self reliant in power generation. Currently, the Delhi government power plants generate around 1,000 MW. The city government had set up a power gas-based power plant at Bawana at a cost of around Rs 4,500 crore but the plant was generating around 300 MW due to shortage of gas supply.

Power was a major focus area of AAP during the election campaign. The city gets 3,500 MW of power from various power plants including of NTPC, under the central quota. As per projection by Central Electricity Authority, the power demand in Delhi will jump to 8,700 MW by 2017.
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