Power tariff may go up as DERC to levy fuel surcharge

Update: 2014-10-06 22:58 GMT
While hiking the power tariff by up to 7.5 per cent for domestic consumers, the DERC in July had withdrawn Power Purchase Adjustment Cost (PPAC) of around eight per cent till October.

Chairman of Delhi Electricity Regulatory Commission PD Sudhakar said a decision on ‘re-adjusting’ the tariff will be taken by end of the month after examining the petitions of the three private discoms to review the PPAC.

‘We will take a decision on the fuel surcharge based on petitions of the discoms. A decision will be taken by the end of this month and if there is a hike in tariff, then it will come into effect from November,’ Sudhakar said.

The regulator had introduced PPAC in 2012 to help the private power distribution companies recover additional cost on account of increase in coal and gas prices. Delhi gets power from a number of gas and coal-based power generation plants.

Power experts said the three discoms Tata Power Delhi Distribution Limited, BSES Rajdhani Power Limited and BSES Yamuna Power Limited, may see a hike in the range of six to eight per cent. While hiking the power tariff by up to 7.5 per cent for domestic consumers, the DERC in July had withdrawn PPAC of around eight per cent for three months.

The withdrawal of the PPAC resulted in marginal decline of tariff for the consumers, whose monthly consumption does not exceed 400 units. In January this year, the DERC had hiked the fuel surcharge to the tune of eight per cent for BSES Yamuna Power Limited, six per cent for BSES Rajdhani and seven per cent for Tata Power Delhi Distribution Limited.

The private power distribution companies, particularly, BRPL and BYPL, have been demanding significant hike in tariff, citing rise in power purchase cost.

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