the first year of aap government packed with success

Immediately after coming into the power, the Aam Aadmi Party government announced to reduce electricity bills for consumers using up to 400 units by 50 per cent and implemented it from March 1.

 

This scheme benefitted around 36.6 lakh families and around 90 per cent domestic consumers, in the city. Simultaneously, the government also planned to counter the prank of ‘huge losses’ that the private power distributing companies (DISCOMS) had been using cunningly allegedly in ‘connivance with politicians’ and power regulator- Delhi Electricity Regulatory Commission (DERC) to secure arbitrary hike in power tariff. 

 The foolproof counter strategy of the government backed with facts, figures and arguments at each stage including ‘public hearing’ by the power regulator resulted in an announcement by DERC Chairperson P D Sudhakar on September 24, 2015 – “No Hike in Power Tariff” , for the first time since 2011. 

“In case of any hike in power tariff, the government was forced to expend more public money on subsidy besides DISCOMS charging more money to all the power consumers, “said a senior officer of Delhi government. “By preventing the government saved public money which will be used in the welfare of people and stopped DISCOMS to take more money from the pockets of consumers. The government thus provided relief to those power consumers not covered under the subsidy,” he added. The announcement came as a huge relief and win for Delhiites who were feeling hapless before DISCOMS as they had been successfully managing undue and arbitrary hike in power tariff by giving frivolous reasons. This ‘no hike’ was achievement when most of the ‘experts’ were estimating ‘moderate hike in power tariff’ and hapless people were also preparing for another organised ‘extortion’ by private power companies. 

And this does not happen over the night, the government devised a strategy to counter the ‘dubious claims of losses’ of DICOMS on all the including effecting representation in DERC’s hearing on power tariff. It is pertinent to mention that DISCOMS had demanded around 20 per cent hike in power tariff possibly with a strategy to force Delhi government to compromise on ‘some hike’ and get it approved by DEERC but a vigilant government foiled their strategy which resulted in ‘no hike’. 

The regulator, which had started the tariff revision process in February, also decided to bring parity in power. These power consumers, the previous Congress-ruled Delhi government was forced to cough up bailout package of Rs 500 crore to DISCOMS on the ground that the government was 49 per cent stake holder in the joint venture so can’t escape the responsibility to bear the losses. But after coming into the power, the AAP government used the same argument to turn the table and mounted regular pressure on DERC to protect the interest of power consumers.

 

This was the second historical achievement for Kejriwal government in power sector after implementing her poll promise of a flat 50 per cent reduction in power tariff from March 1, 2015 within 15 days of oath taking ceremony. The subsidy which costs around Rs 1427 crore annually slashed bills of over 36.06 lakhs households consumers using electricity below 400 units per month, which comprises around 84 per cent of power consumers in the city. While the water subsidy will run for five years, as promised in the AAP manifesto, Sisodia said the power relief will continue till the Comptroller and Auditor General completes its audit of the finances of power distribution companies — ordered by AAP during its first 49-day stint in power.

“Relief in electricity bills will continue even in the eventually of any tariff hike by the Delhi Electricity Regulatory Commission,” said a senior government official. 

In their petition before DERC, the DISCOMS cited the widening revenue gap of around Rs 28,000 crore, and pitched for early announcement of annual tariff revision. The companies, which have sought up to 20 per cent hike in tariff, have communicated to DERC about the resource crunch being faced by them owing to steep rise in power purchase cost.

The Reliance Energy-backed BSES Discoms has petitioned the Delhi Electricity Regulatory Commission (DERC) for upto 19 per cent hike, while Tata Power Delhi Distribution Ltd (TPDDL) has demanded an increase of 20 per cent. 

According to the claims of BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd their total recoveries had raised to Rs 20,000 crore while for TPDDL, it has been estimated at Rs 8,000 crore, as per the Discoms. On June 12, the DERC had hiked tariff by upto six percent to compensate the discoms for rise in power purchase cost.