Electricity Regulator approves tariffs for DVC

New Delhi, Oct 5 (UNI) The Central Electricity Regulatory Commission (CERC) today approved the annual fixed charges for generation and transmission of Damodar Valley Corporation (DVC) at Rs 1107 crore, Rs 1095 crore and Rs 1089 crore against the claim of Rs 1316 crore, Rs 1337 crore and Rs 1360 crore for the years 2006-07, 2007-08 and 2008-09 respectively.

''In order to facilitate smooth transition to regulatory regime and in view of the consideration that it would not be possible for DVC to rationalise its expenses from back date, the Commission has allowed the prevailing DVC tariff up to the year 2005-06,'' a CERC statement issued here said.

With CERC announcing generation and transmission tariff for Damodar Valley Corporation (DVC) for the period 2004-09, the Corporation for the first time has come under the ambit of regulatory tariff mechanism provided under the Electricity Act, 2003.

Prior to the advent of the Electricity Act, 2003, the Corporation had the autonomy to determine its own rates for bulk supply as well as retail distribution under Section 20 of the DVC Act, 1948.

The performance norms have been progressively raised in the years 2006-07, 2007-08 and 2008-09 after detailed analysis and consultation with the petitioner and the stakeholders. Accordingly, the energy charges for the four thermal power stations of DVC namely, Bokaro, Chandrapur, Durgapur and Mejia, when compared to the charges claimed in the petition, would be rationalised to the tune of 29 per cent, 6.5 per cent, 26 per cent and 21 per cent respectively by the year 2008-09 at the constant fuel prices.

DVC as a statutory body was established by the Central Government under DVC Act, 1948 for the development of Damodar Valley with the participation of Central Government and the State Governments of West Bengal, Bihar and Jharkhand.

MORE UNI RT RA GC1826