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Power tariff in Delhi to go up by upto 6 per cent from Monday

PTI 13 Jun 2015, 8:25:59 IST

New Delhi: Power tariff in the national capital was today hiked by up to six per cent by the Delhi Electricity Regulatory Commission (DERC) as it restored a surcharge to compensate the private electricity distribution companies for rise in power purchase cost.  

Reacting to the DERC's decision, the Aam Aadmi Party Government said it will ask the regulator to review the hike as it will put additional burden on the consumers.  

The hike will be effective from Monday.  DERC chairman P D Sudhakar told PTI that the Power Purchase Adjustment Cost (PPAC) surcharge has been restored following a directive from the Appellate Tribunal for Electricity (APTEL).

He said 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 4 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 5 per cent surcharge.

Delhi's Power Minister Satyendar Jain said the government will ask DERC to review the order. Sudhakar said the surcharge will be for last two quarters as well as the current quarter.  

In an order on May 28, the APTEL had asked the DERC to pass on Power Purchase Adjustment Cost (PPAC) for two quarters (from October 2014 to March 2015) to the private power distribution companies within three weeks.  

The APTEL was approached by the Tata Power Delhi Distribution Ltd in March.The DERC had introduced PPAC in 2012 to help the private power distribution companies recover additional cost on account of increase in coal and gas prices. Delhi gets power from a number of gas and coal-based power generation plants.

The DERC had withdrawn the PPAC in July. PPAC is a surcharge given to the discoms to compensate variations in the market-driven fuel costs like additional costs on account of increase in coal and gas prices.

The hike will be on energy charges as well as fixed charges but will not be applicable on the additional eight per cent surcharge which was levied to help discoms clear the past dues.

The city has seen a series of hike in power tariff in the past two years.The tariff was hiked by 22 per cent in 2011 followed by five per cent hike in February 2012.

The tariff was increased by up to two per cent in May 2012 year and again by 26 per cent for domestic consumers in July 2012.  It was hiked by up to three per cent in February 2013 and again by five per cent in August 2013.

It was hiked by upto 7 per cent in November last year.  The cost of buying power has increased primarily on account of an increase in the input prices of raw material like coal and gas, officials said.