DERC confused over widening revenue gap
29 July 2014 6:23 AM IST
The Delhi Electricity Regulatory Commission (DERC) seems confused over its increasing revenue gap in the past three years. Even as DERC has increased power tariff by eight per cent annually in the last three years, its revenue gap had widened to Rs 13,670 crore in 2012-13 from Rs 11,430 in 2011-12.
The DERC has not only failed to understand its increasing revenue gap, even its officers have different views on it.
While the chairman of DERC PD Sudhakar had said the increase in revenue gap is a result of miscalculation, the commission’s member JP Singh opines that the department had underestimated the power purchase costs over the previous years.
The commission revises the power tariff every three months against private discoms demand of power purchase adjustment cost (PPAC). Currently, the PPAC revision is halted for three months.
‘Tariff orders are based on estimated and projections of future costs by discoms. The actual costs are incurred over the period of time. Our projection was lower than the actual costs’, Singh said.
The three Delhi discoms — BSES Yamuna Power Limited, BSES Rajdhani Power Limited and Tata Power Delhi Distribution Limited had been continuously demanding a hike in power tariff to fill the revenue gap. However, various NGOs, Resident Welfare Associations and political parties have blamed DERC for working in favour of private discoms.
The NGOs have alleged that the discoms have earned Rs 4,500 crore in last five years from the time they had introduced electronic meters. ‘After introduction of electronic meters, the consumers are charged 25 to 40 per cent extra in their bills. The discoms ear around Rs 75 crore through this every month,’ read a report by NGO Chetna.
Former Delhi chief minister Arvind Kejriwal had ordered a CAG (Comptroller and Auditor General) audit of accounts of private discoms. The audit is still under process.
The DERC has not only failed to understand its increasing revenue gap, even its officers have different views on it.
While the chairman of DERC PD Sudhakar had said the increase in revenue gap is a result of miscalculation, the commission’s member JP Singh opines that the department had underestimated the power purchase costs over the previous years.
The commission revises the power tariff every three months against private discoms demand of power purchase adjustment cost (PPAC). Currently, the PPAC revision is halted for three months.
‘Tariff orders are based on estimated and projections of future costs by discoms. The actual costs are incurred over the period of time. Our projection was lower than the actual costs’, Singh said.
The three Delhi discoms — BSES Yamuna Power Limited, BSES Rajdhani Power Limited and Tata Power Delhi Distribution Limited had been continuously demanding a hike in power tariff to fill the revenue gap. However, various NGOs, Resident Welfare Associations and political parties have blamed DERC for working in favour of private discoms.
The NGOs have alleged that the discoms have earned Rs 4,500 crore in last five years from the time they had introduced electronic meters. ‘After introduction of electronic meters, the consumers are charged 25 to 40 per cent extra in their bills. The discoms ear around Rs 75 crore through this every month,’ read a report by NGO Chetna.
Former Delhi chief minister Arvind Kejriwal had ordered a CAG (Comptroller and Auditor General) audit of accounts of private discoms. The audit is still under process.
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