Seek permission before hiking tariff: SC to DERC

New Delhi, June 13 : The Supreme Court today directed Delhi Electricity Regulatory Commission (DERC) not to give effect to the new tariff rates to be fixed by it without its prior permission.

A vacation bench comprising Justices Arijit Pasayat and Altamas Kabir, while admitting a petition filed by DERC challenging the order of the tribunal fixing the depreciation rate for the power distribution companies in Delhi such as BSES Yamuna Power Ltd and others at the rate of six per cent which may force the Commission to hike the electricity rates in Delhi, also issued notices on the stay application.

DERC had fixed depreciation rates at three per cent in 2001 but the distribution companies demanded six per cent. Electricity tribunal in 2005 allowed the petition of the distribution companies and directed DERC to allow them six per cent depreciation.

DERC approached the apex court against the order of the tribunal contending that the hike in depreciation rates will lead to additional burden of Rs 300 crores on the state exchequer and the hike in electricity rates will become inevitable and the burden will have to be passed on to the average consumer in Delhi. Such a situation may lead to public unrest.

The court in its order said the petitioner can go ahead with the process of finalising tariff rates in Delhi but the same cannot be given effect to without permission of the court.

DERC is a regulatory authority in Delhi empowered to fix electricity tariff rates in the national capital.

UNI