Discoms write to DERC, seek hike in power tariffs

In a move that could result in a hike in the city’s electricity tariff, three private discoms have written to the Delhi Electricity Regulatory Commission that they are facing a revenue gap between their income and expenditure to the tune of about Rs 2,200 crore.

The three distribution firms — BSES Rajdhani Power Ltd (BRPL), BSES Yamuna Power Ltd (BYPL) and Tata Power Delhi Distribution Ltd (TPDPL) — have submitted in their petitions related to annual power tariff for 2016-17 that about 85 per cent of their expenditure was due to the cost of purchasing electricity.

It is reliably learnt that the BRPL has registered a revenue gap of about Rs 900 crore, BYPL about Rs 600 crore and TPDPL about Rs 700 crore. At present, the city’s electricity watchdog, comprising its newly-appointed chairperson Krishna Saini and member B.P. Singh, is going through these petitions. One post in the regulatory body has been lying vacant ever since its member J.P. Singh left.

A highly-placed source said if the DERC accepts the petitions of the discoms, there are chances that power tariff could go up by anything between 10 and 15 per cent. Last time, the city had witnessed an increase in power tariff was in September 2014. There were no power hikes effected in 2015 as the AAP government had put pressure on the DERC not to approve of any such decision.

The tariff levels had remained unchanged because the regulator had refused to allow revenue increase sought by the discoms.

The revenue disallowed for BRPL, BSES and TPDPL stood at Rs 913 crore, Rs 700 crore and Rs 912 crore, respectively. While rejecting the proposal to hike power tariff, the DERC had said that even at the exiting tariff levels there would be a surplus revenue of Rs 92 crore, Rs 37 crore and Rs 323 crore at BRPL, BYPL and TPDPL respectively.

Refusing to effect any hike in power tariff, the regulator had also said as there was surplus revenue for BRPL, BYPL &TPDPL that would additionally liquidate the principal amount of the accumulated revenue gap, so a decision was taken to retain the tariff for FY2015-16 at prevailing levels, with minor structural changes, based on the stakeholders’ suggestions/inputs.

Delhi’s power demand is in the region of around 5,000 megawatts (MW).

At present, electricity rates start at Rs 4 per unit for consumption of up to 200 units, going up to Rs 5.80-5.90 per unit for 200-400 units, Rs 7.30 per unit for 400-800 units and higher for more consumption. The exact rates vary according to the electricity provider.