Power tariff hiked by 6 per cent, AAP mulling legal options

Posted By: PTI
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New Delhi, June 12: Power tariff in the capital was today hiked by up to six per cent by the Delhi Electricity Regulatory Commission (DERC) despite strong opposition to it by the AAP government which said it is exploring legal recourse against the decision.

DERC chairman P D Sudhakar said the regulator acted as per directive of the Appellate Tribunal for Electricity (APTEL) which had asked it to restore Power Purchase Adjustment Cost (PPAC) surcharge to compensate the private electricity distribution companies for rise in power purchase cost.

Tariff hike: AAP mulling legal options

Sudhakar told PTI that the surcharge will be to the tune of six per cent for consumers of BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd while it will be four per cent for those getting power supply from Tata Power Delhi Distribution Ltd. The consumers in the New Delhi Municipal Corporation areas will have to pay five per cent surcharge. The hike will be effective from Monday.

Reacting to the DERC’s decision, the Aam Aadmi Party  Government said it will ask the regulator to review the decision and that it should wait for the report of the Comptroller and Auditor General (C&AG) on financial position of the discoms before effecting the hike   "The government will seek a review of the DERC order and will convey its disagreement to the commission in writing.

The government has also decided to seek opinion for taking legal recourse against this decision, which in its view is uncalled for, since no financial burden should be passed on to consumers till all issues arising out of the functioning of power distribution companies are sorted out.

"There are a lot of questions about the functioning of these private power distribution companies in Delhi, and the government is committed to get to the root of this problem," Delhi Power Minister Satyendra Jain said.

The AAP government in its first stint had ordered a CAG audit of the discoms and officials indicated that the auditor has already completed the exercise. In an order on May 25, the APTEL had asked the DERC to pass on Power Purchase Adjustment Cost (PPAC) to the private power distribution companies within three weeks.


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