DERC likely to announce new tariff rates in a fortnight

The DERC will hold public hearing on August 4 and 5 as part of the process to finalise the tariff following which the rates for domestic and commercial consumers will be fixed. Sources in DERC indicated that there was a possibility of “no hike” at all or a very marginal hike of 1-2 <g data-gr-id="44">per cent</g>, notwithstanding the demand for a substantial increase by the private power distribution companies. 

They said tariff will be announced within a fortnight. Citing the widening revenue gap of around Rs 28,000 crore, Delhi’s three private power distribution companies -- BSES Yamuna Pvt Ltd, BSES Rajdhani Pvt Ltd and Tata Power Delhi Distribution Ltd -- had sought up to 20 per cent hike in tariff. 

Representatives of various Resident Welfare Associations are likely to participate in the two-day public hearing on <g data-gr-id="28">tariff</g>.

The AAP government is understood to have conveyed to DERC that it was not in favour of any hike. The two BSES discoms had petitioned DERC for upto 19 per cent <g data-gr-id="33">hike,</g> while TPDDL has demanded an increase of 20 <g data-gr-id="32">per cent</g>.

The DERC sources, however, said there was no possibility of heeding to the demands of 

the three private <g data-gr-id="27">discoms</g>. Making a case for hiking tariff, the <g data-gr-id="34">discoms</g> have argued that their combined revenue gap due to absence of a cost-reflective tariff has gone <g data-gr-id="35">upto</g> Rs 28,000 crore and the financial position would worsen further if there was no significant increase in rates. On June 12, the DERC had hiked tariff by <g data-gr-id="36">upto</g> six <g data-gr-id="38">per cent</g> to compensate the <g data-gr-id="37">discoms</g> for <g data-gr-id="39">rise</g> in power purchase cost. The AAP government had strongly criticised the DERC for the hike.