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SC declines to permit enhanced power tariff rates in Delhi

Written by: Staff

New Delhi, Jul 6 (UNI) The Supreme Court today declined to permit the Delhi Electricity Regulatory Commission (DERC) to enforce its enhanced power tariff rates in Delhi.

A bench comprising Justices Arijit Pasayat and Lokeshwar Singh Panta, however fixed July 25 for final hearing of DERC appeal against the judgment of the Tribunal directing DERC to permit depreciation at the rate of 6 per cent for the distribution companies as demanded by the discoms.

DERC in its appeal has pleaded that enhancing depreciation rates from 3 per cent to 6 per cent shall inevitably lead to steep hike in electricity rates in Delhi which may cause public outcry as the burden would have to be born by the consumer ultimately.

Such hike in depreciation rates shall lead to an extra burden of about Rs 275 crores on the state exchequer.

Today's order, however, came on an application moved by DERC seeking to implement new tariff rates as the time of state subsidy on the power in the city shall expire on July 15, 2006.

The court, however ruled that the government was at liberty to keep on giving subsidy but the same shall be subject to the final outcome of the present appeal.


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