Power firms, regulator push Delhi towards darkness
1 Feb 2014 6:12 AM IST
Delhi Electricity Regulatory Authority (DERC) and the private power distribution companies have inadvertently come together to plunge the city into a power crisis. The regulator on Friday approved a 6-8 per cent surcharge on power purchase costs by power distribution companies, a notice on the regulator’s web site said. This has been done, said a DERC official, to overcome the increase in the fuel (coal) costs.
The notice said that the surcharge was for a period of three months from 1 February or until any further order. Arvind Kejriwal-led Delhi government, which came to power campaigning against high tariff, immediately condemned the DERC decision and said that ‘it finds the surcharge completely uncalled for, since an audit by the Comptroller and Auditor General (CAG) into the accounts of private distribution companies is already under progress.’
‘Delhi government is of the clear view that the DERC should have waited for the audit report of the CAG and there was no need of showing a tearing hurry to impose this unnecessary burden on the people,’ read the statement of Delhi government, which on coming to power had announced a Rs 230-odd crore subsidy to bring down the tariff by 50 per cent for a large number of consumers.
The surcharge, under the Indian Electricity Act, has to be borne by the consumers practically nullifying the relief given by the Kejriwal government. Some activists close to Aam Aadmi Party are likely to move the high court against the DERC directive.
Incidentally, Delhi chief minister Arvind Kejriwal on Friday had warned power distribution companies to cooperate with the government else their licences would be cancelled. ‘Once the Comptroller and Auditor General’s (CAG) audit report is out, the power companies have to co-operate in examination of their accounts,’ Kejriwal told media when pointed towards the impending power crisis with the generation majors NTPC Ltd and NHPC Ltd refusing to supply power to Anil Ambani-owned BSES on account of non-payment of dues. They have refused to extend any further credit to the ‘cash-strapped’ companies.
‘If they (discoms) do not (make payment), then the government will not keep quiet. If needed, we will also cancel their licences,’ Kejriwal said. The discoms on Thursday said they would be forced to resort to load shedding in the national capital because of ‘cash constraints’.
The chief minister said: ‘The power companies are trying to create panic among the people. But I want to warn them, if they try to create panic, action will be taken against them.’ Kejriwal said, if needed, new power companies will be brought in to supply electricity in Delhi.
‘There are not only Tata and Ambanis in the country. If needed, we will bring new power companies to Delhi,’ he said. Kejriwal had requested the CAG to audit the accounts of the three power discoms. Power distribution in Delhi is controlled by Reliance owned BSES Yamuna Power and BSES Rajdhani Power and Tata Power-owned NDPL.
The notice said that the surcharge was for a period of three months from 1 February or until any further order. Arvind Kejriwal-led Delhi government, which came to power campaigning against high tariff, immediately condemned the DERC decision and said that ‘it finds the surcharge completely uncalled for, since an audit by the Comptroller and Auditor General (CAG) into the accounts of private distribution companies is already under progress.’
‘Delhi government is of the clear view that the DERC should have waited for the audit report of the CAG and there was no need of showing a tearing hurry to impose this unnecessary burden on the people,’ read the statement of Delhi government, which on coming to power had announced a Rs 230-odd crore subsidy to bring down the tariff by 50 per cent for a large number of consumers.
The surcharge, under the Indian Electricity Act, has to be borne by the consumers practically nullifying the relief given by the Kejriwal government. Some activists close to Aam Aadmi Party are likely to move the high court against the DERC directive.
Incidentally, Delhi chief minister Arvind Kejriwal on Friday had warned power distribution companies to cooperate with the government else their licences would be cancelled. ‘Once the Comptroller and Auditor General’s (CAG) audit report is out, the power companies have to co-operate in examination of their accounts,’ Kejriwal told media when pointed towards the impending power crisis with the generation majors NTPC Ltd and NHPC Ltd refusing to supply power to Anil Ambani-owned BSES on account of non-payment of dues. They have refused to extend any further credit to the ‘cash-strapped’ companies.
‘If they (discoms) do not (make payment), then the government will not keep quiet. If needed, we will also cancel their licences,’ Kejriwal said. The discoms on Thursday said they would be forced to resort to load shedding in the national capital because of ‘cash constraints’.
The chief minister said: ‘The power companies are trying to create panic among the people. But I want to warn them, if they try to create panic, action will be taken against them.’ Kejriwal said, if needed, new power companies will be brought in to supply electricity in Delhi.
‘There are not only Tata and Ambanis in the country. If needed, we will bring new power companies to Delhi,’ he said. Kejriwal had requested the CAG to audit the accounts of the three power discoms. Power distribution in Delhi is controlled by Reliance owned BSES Yamuna Power and BSES Rajdhani Power and Tata Power-owned NDPL.
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