DERC to announce power tariff hike with CAG audit pending
5 July 2014 6:12 AM IST
Delhi Electricity Regulatory Commission (DERC) is all set to announce hike in power tariff in the next week, most probably on July 10. According to sources,the regulatory body has completed the formalities to increase the electricity rates and announcement is just a matter of time.
The commission has given in to the power distributing companies’ demand to increase the rates by accepting their both arguments- increase in purchase cost and recovery of regulatory assets. ‘The ongoing CAG will not have any effect on announcement of new electricity rates,’said a senior officer of DERC.
It’s pertinent to mention that former Delhi chief minister had declared that the government would not allow any hike in electricity rates till the CAG audit is completed and even went on to threatening the discoms to cancel their licenses. Even, the Lieutenant Governor of Delhi Najeeb Jung in his first address to the assembly had asserted that the government would not hesitate to cancel the licenses of Disoms if they don’t fall in line and no hike in power tariff would be allowed before CAG audit is completed. Kejriwal had even claimed that the electricity rates would come down if CAG audit is completed. But amid allegations that Discoms are not cooperating in CAG audit the audit is still pending.
Delhiites may see an increase of Rs 2 per unit. The DERC is now busy in analysing the petitions and comments submitted by power distribution companies and consumers respectivlely.
Sources in the power department said that: ‘An announcement on power tariffs in the national capital can be expected after 20 July.’
As the DERC has prepared for the recovery of Rs 11,400 crore of regulatory assets and power regulators had chalked out a plan for recovering Rs 800 crore over a period of six years from now on. The process has begun after the power regulator held its two-days’ public hearing on 20 June and 21 June. During the public hearing, the DERC had hinted to hike power tariffs, although it has faced stiff opposition from various RWAs’ who demanded that power tariff revision should not be done until the CAG audit is complete. The regulator also clarified that the ongoing CAG audit will have no bearing on the tariff announcement. BSES discoms are facing financial crunch and counting heavily on higher tariffs in order to make regular payment to NTPC.
LG Najeeb jung lifts restrictions on supply of power
Delhi LG Najeeb Jung on Friday lifted the restrictions imposed on supply of power in malls, offices and on high mast halogen lights during nights. With the national capital witnessing long outages following the damage caused to towers and lines due to devastating storm which struck the city on 30 May, Jung had issued directives to control the current power problem which included snapping power supply to malls after 10 pm. The city was also reeling under blistering heat. Jung had also directed switching off high mast halogen lights in the streets during the night hours and government establishments, including Delhi Secretariat and other government offices, universities, colleges were advised to switch off air conditioning between 3.30 to 4.30 pm to conserve power during day peak hours.
The commission has given in to the power distributing companies’ demand to increase the rates by accepting their both arguments- increase in purchase cost and recovery of regulatory assets. ‘The ongoing CAG will not have any effect on announcement of new electricity rates,’said a senior officer of DERC.
It’s pertinent to mention that former Delhi chief minister had declared that the government would not allow any hike in electricity rates till the CAG audit is completed and even went on to threatening the discoms to cancel their licenses. Even, the Lieutenant Governor of Delhi Najeeb Jung in his first address to the assembly had asserted that the government would not hesitate to cancel the licenses of Disoms if they don’t fall in line and no hike in power tariff would be allowed before CAG audit is completed. Kejriwal had even claimed that the electricity rates would come down if CAG audit is completed. But amid allegations that Discoms are not cooperating in CAG audit the audit is still pending.
Delhiites may see an increase of Rs 2 per unit. The DERC is now busy in analysing the petitions and comments submitted by power distribution companies and consumers respectivlely.
Sources in the power department said that: ‘An announcement on power tariffs in the national capital can be expected after 20 July.’
As the DERC has prepared for the recovery of Rs 11,400 crore of regulatory assets and power regulators had chalked out a plan for recovering Rs 800 crore over a period of six years from now on. The process has begun after the power regulator held its two-days’ public hearing on 20 June and 21 June. During the public hearing, the DERC had hinted to hike power tariffs, although it has faced stiff opposition from various RWAs’ who demanded that power tariff revision should not be done until the CAG audit is complete. The regulator also clarified that the ongoing CAG audit will have no bearing on the tariff announcement. BSES discoms are facing financial crunch and counting heavily on higher tariffs in order to make regular payment to NTPC.
LG Najeeb jung lifts restrictions on supply of power
Delhi LG Najeeb Jung on Friday lifted the restrictions imposed on supply of power in malls, offices and on high mast halogen lights during nights. With the national capital witnessing long outages following the damage caused to towers and lines due to devastating storm which struck the city on 30 May, Jung had issued directives to control the current power problem which included snapping power supply to malls after 10 pm. The city was also reeling under blistering heat. Jung had also directed switching off high mast halogen lights in the streets during the night hours and government establishments, including Delhi Secretariat and other government offices, universities, colleges were advised to switch off air conditioning between 3.30 to 4.30 pm to conserve power during day peak hours.
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