Power tariff may go up in Delhi, DERC to restore surcharge

New Delhi, May 27: Power tariff in the city is likely to go up next month with the Appellate Tribunal for Electricity (APTEL) directing Delhi's power regulator DERC to restore a surcharge within three months to compensate the discoms for rise in power purchase cost.

In an order, the APTEL asked the Delhi Electricity Regulatory Commission (DERC) to pass on Power Purchase Adjustment Cost (PPAC) for two quarters (from October 2014 to March 2015) to the private power distribution companies within three weeks.

"We direct the Delhi Commission to determine the PPAC for the above said 3rd and 4th quarter within three weeks from today otherwise face the consequences," the APTEL order said.

The DERC had withdrawn the PPAC in July. PPAC is a surcharge given to the discoms to compensate variations in the market-driven fuel costs like additional costs on account of increase in coal and gas prices. The APTEL was approached by the Tata Power Delhi Distribution Ltd in March.

Sources in the DERC said the regulator was studying the APTEL order. The TPDDL has sought up to 4 per cent hike as PPAC while BSES discoms have demanded 7-20 per cent hike.

The DERC had introduced PPAC in 2012 to help the private power distribution companies recover additional cost on account of increase in coal and gas prices. Delhi gets power from a number of gas and coal-based power generation plants. The city has seen a series of hike in power tariff in the past two years.

The tariff was hiked by 22 per cent in 2011 followed by five per cent hike in February 2012. The tariff was increased by up to two per cent in May 2012 year and again by 26 per cent for domestic consumers in July 2012.

It was hiked by up to three per cent in February 2013 and again by five per cent in August 2013. It was hiked by upto 7 per cent in November last year.

The cost of buying power has increased primarily on account of an increase in the input prices of raw material like coal and gas, officials said.


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