Power in Delhi to cost more from November

NEW DELHI: Five months after Delhi Electricity Regulatory Commission announced a 7.5% increase in electricity tariffs, it's time for residents to pay more for power from next month.
Discoms BSES Yamuna, BSES Rajdhani and Tata Power Delhi have submitted their petitions to the regulator for surcharge by way of power purchase adjustment charges (PPAC).
The difference will reflect in the consumers' bills from November 1, 2014 to January 31, 2015.BYPL has sought an increase of 17.1%, BRPL has asked for 7.26% more and Tata Power Delhi has petitioned for up to 7% hike due to fuel costs.
The petitions submitted by the discoms will be scrutinized by the commission, which will then decide on how much surcharge to allow, by the month-end. PPAC, a surcharge given to compensate the discoms for variations in the market-driven fuel costs, was halted by DERC during tariff announcement in July this year. The commission had said it was a temporary measure. While revising the power tariffs, DERC had withdrawn PPAC of around 8% till October. The PPAC surcharge is for the costs incurred by discoms from July to September 2014.
According to sources, east Delhi discom BYPL is in a more financially precarious situation compared to the other two discoms and has asked for the heftier hike to cover the spiralling costs. “According to the the Supreme Court order, BSES discoms are paying their current dues. Despite that, SJVNL and DVC have regulated power supply . As a result, BYPL has to purchase additional power from other sources at higher rates while simultaneously paying fixed charges,“ said a discom source. Though BYPL has written to both SJVNL and DVC to stop regulating power, it is yet to hear from them. Discoms claimed they buy 80%85% of electricity from central generating stations, governed by CERC. They are able to pass 100% increase in inputs costs on to discoms on a monthly basis, while Delhi discoms are unable to do so, they added.
The withdrawal of PPAC in July resulted in marginal decline of tariff for consum ers whose monthly consumption does not exceed 400 units. In January, DERC had hiked the fuel surcharge to the tune of 8% for BSES Yamuna, 6% for BSES Rajdhani and 7% for Tata Power. BRPL and BYPL have been demanding a significant hike in tariff, citing increased costs. Going by official figures, 80%-90% of the discoms' revenue goes into purchasing power from centraland state-government owned entities through long-term power purchase agreement, at rates determined by the central and state regulators.
DERC had introduced PPAC in 2012 to help the private power distribution companies recover the additional cost on account of increase in coal and gas prices.