 "Delhi power bills to go up by up to 6%")
Pursuant to the APTEL directive asking the Delhi Electricity Regulatory Commission (Derc) to determine fuel price reflection on the final electricity rates, the regulator announced the same On Friday.
The rate of hike is 5 per cent in NDMC areas, 4 per cent in areas of Tata Power and 6 per cent in BYPL & BRPL.
"In compliance with the order of the Hon’ble APTEL, the Commission has taken into consideration the claims for Q2FY15, Q3FY15 and Q4FY15 for DISCOMs and has decided to spread the claim of these 3 quarters over the next 3 quarters and approves the following PPAC on a provisional basis for a period of 9 months i.e., from 15/06/2015 nwards or till further Orders," said the release by DERC.
Tata Power Delhi Distribution Limited had filed a case against Derc, which rolled back its tariff hike in less than 24 hours, in November last year ahead of Assembly elections. The hike was proposed owing to increase in Power Purchase Adjustment Cost (PPAC) — a surcharge given to compensate the distribution companies for variations in the market-driven fuel costs (additional costs on account of increase in coal and gas prices).
In its judgment, Aptel observed, “Petitioner (TPDDL) is already suffering huge financial crunch, firstly, on account of non-determination of PPAC on time-bound basis, and secondly, arising out of the revenue gap of Rs 2,359 crore which is well acknowledged by the Derc… The petitioner finds it very difficult to wait for hearing and conclusion of the tariff proceedings and ultimately tariff determination for the year 2015-16.”
Aptel has ordered last month, “We direct the Delhi Commission to determine the PPAC for the above said third and fourth quarter within three weeks from today otherwise face the consequences and action will be taken by this Tribunal.”
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The current average rate of electricity in Delhi is Rs 2.8 per unit while the power purchase cost has gone up to Rs 5 per unit.
DERC however noted, "The PPAC claim of any quarter submitted by the Petitioner shall be examined by the
Commission. In view of public interest, the Commission will endeavour that while approving the PPAC, there is no Tariff shock and at the same time reasonable PPAC is provided to the DISCOMs. The Commission may take appropriate view to carry forward or spread some amount of PPAC in the subsequent quarters.”
It also said any spill over of the entitlement of PPAC during FY 2014-15 will be duly factored into the tariff calculation of FY 2015-16.
"The Commission reserves the right to subsume these charges in the Tariff Order for FY 2015-16 if considered fit for both consumers and DISCOMs. This issue will be decided after holding public hearing and taking a final view on the Petitions filed by the DISCOMs," said DERC.
The three discoms — TPDDL, BRPL and BYPL had requested a hike of 7.42 per cent, 7.26 per cent and 17.01 per cent, respectively, last year in November. Derc in its notification dated 13 November 2014 approved a tariff hike on the total monthly bill in range of 4.5 per cent to seven per cent. This was rolled back and for past two quarters, no hike has been approved.
Delhi Chief Minister Arvind Kejriwal- led Aam Aadmi Party halved the power bills of Delhi consumers according to their poll promise in February after they came to power. The reduction would now be on the increased rates, said executives in the distribution companies.
The combined financial loss of Delhi's three power distribution companies was Rs 22,000 crore in 2012-13 when the government provided a subsidy of Rs 118 crore to the discoms.