Delhi HC declines to further entertain PIL against power tariff hike in the city

The Delhi High Court on Wednesday refused to further entertain a PIL challenging the decision of electricity regulator DERC to allow three discoms to raise power tariff under the head of Power Purchase Cost Adjustment Charges (PPAC) costs.

‘Delhi Electricity Regulatory Commission (DERC) is the right fora. You raise the plea there,’ a bench of Chief Justice G Rohini and Justice Pradeep Nandrajog said while disposing of the PIL on the issue. Earlier, the bench had asked DERC to file its response as to whether it has complied with its own formula and procedures in permitting the discoms to raise power tariff under the head of PPAC costs.

DERC had on 31 July, 2013, passed an order permitting Reliance Anil Dhirubhai Ambani Group firms, BSES Rajdhani Power Ltd, BSES Yamuna Power Ltd, and Tata Power Delhi Distribution Ltd to increase their PPAC charges by 6, 8 and 7 per cents respectively.

The court was hearing the PIL filed by Madhuresh Lakhaiyar who has alleged DERC, acting in collusion with the discoms, had permitted them to increase Power Purchase Cost Adjustment Charges (PPAC) costs. 

There was a nexus between DERC and discoms as even though PPAC is a component of the tariff, no public hearing took place, which was in violation of a provison of the Electricity Act, 2003, the plea said. No public hearing was conducted by DERC as it was working with a view to providing maximum benefits to the discoms in violation of the trust reposed by consumers in the power watchdog, it said.

The counsel for DERC, however, had said a public hearing did take place and a notice was also issued to the public at large seeking their inputs on the matter.

‘The July 2013 order has been passed after complying with the relevant provisions of the Electricity Act and increase permitted by DERC was in accordance with the formula adopted by DERC in its tariff order,’ DERC’s counsel had said.