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Delhiites celebrate as DERC rules out power tariff hike

The commission has however hiked fixed charges for high consumers of electricity

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Bringing relief to thousands of consumers, the Delhi Electricity Regulatory Commission (DERC) has not made any changes in the power tariff for the year 2017-2018. The new tariff schedule will come into effect from September 1.

"The new tariff schedule has been prepared considering affordability and paying capacity of consumers," BP Singh, member of DERC said.

But while there is no tariff hike, fixed charges for consumers with 3, 4 and 5 KW connections have gone up. As a result, consumers will have to pay an increased fixed charge of Rs. 105, Rs. 140 and Rs. 175, respectively, as against Rs. 100 earlier.

In another move aimed at benefiting consumers running small-scale commercial establishments, the power regulator has also decided to deem all such consumers having 5 KW load connection as domestic consumers.

"Earlier, this clause was only applicable to those in slum areas, but now it will be applicable across the city," Singh said.

Despite such measures, the fixed charge hikes will result in 0.14-1.13 percent increase in power bills of domestic consumers who have an electricity load between 3KW and 5KW. An estimated 15 percent of all domestic consumers in the city are likely be affected.

Domestic consumers number around half of the total consumers of the three power distribution companies in the national capital.

Power experts said Delhi's total revenue gap (regulatory assets) owed to the three discoms, including BSES companies BRPL and BYPL and Tata Power Delhi Distribution Limited (TPDDL), is over Rs 34,000 crore till 2015-2016.

...& ANALYSIS

  • The fact that power tariffs have not been increased may sound like good news but it isn't. The losses that the three power distribution companies are facing suggests that without a gain revenue inefficient power supply will remain the norm.
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