DERC hikes power tariff by 6%, AAP to seek review
13 Jun 2015 6:19 AM IST
Reacting to the DERC’s decision, the Aam Aadmi Party Government said it will ask the regulator to review the hike as it will put <g data-gr-id="42">additional</g> burden on the consumers. The hike will be effective from Monday, June 15.
DERC chairman P D Sudhakar said that the Power Purchase Adjustment Cost (PPAC) surcharge has been restored following a directive from the Appellate Tribunal for Electricity (<g data-gr-id="28">APTEL</g>).
He said the surcharge will be to the tune of six per cent for consumers of BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd while it will be four 4 <g data-gr-id="35">per cent</g> for those getting power supply from Tata Power Delhi Distribution Ltd. The consumers in the New Delhi Municipal Corporation (NDMC) areas will have to pay 5 <g data-gr-id="36">per cent</g> surcharge.
Delhi’s Power Minister <g data-gr-id="31">Satyendar</g> Jain said the government will ask DERC to review the order. Sudhakar said the surcharge will be for last <g data-gr-id="27">two quarters</g> as well as the current quarter.
In an order on May 28, the <g data-gr-id="37">APTEL</g> had asked the DERC to pass on Power Purchase Adjustment Cost (PPAC) for two quarters (from October 2014 to March 2015) to the private power distribution companies within three weeks. The <g data-gr-id="38">APTEL</g> was approached by the Tata Power Delhi Distribution Ltd in March.
The DERC had introduced PPAC in 2012 to help the private power <g data-gr-id="41">discoms</g> recover additional cost on account of increase in coal and gas prices. Delhi gets power from <g data-gr-id="33">a number of gas</g> and coal-based power generation plants.
The DERC had withdrawn the PPAC in July. PPAC is a surcharge given to the <g data-gr-id="67">discoms</g> to compensate variations in the market-driven fuel costs like additional costs on account of increase in coal and gas prices.
The hike will be on energy and fixed charges but will not be applicable on the additional 8% surcharge, which was levied to help <g data-gr-id="68">discoms</g> clear dues.
The city has seen a series of hike in power tariff in the past two years. The tariff was hiked by 22% in 2011 followed by 5% in February 2012. The tariff was hiked by up to 2% in May 2012 and again by 26% for domestic consumers in July 2012. It was hiked by up to 3% in February 2013 and again by 5% in August 2013. It was hiked by up to 7% in November last year. The cost of buying power has increased due to rise in the prices of raw material, officials said.
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