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Delhi govt's other power tussle

In a first, the AAP government has requested the Union comptroller and auditor general to audit the three discoms operating in Delhi

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Shreya Jai
Last Updated : Feb 15 2016 | 12:06 AM IST
The Aam Aadmi Party (AAP) came to power in Delhi with a promise of cheap power to citizens and to "expose the power distribution companies".

Power charges for the 0-400 units consumption bracket were halved but it has had to put brakes on the promise of free power. Close to three million in the 0-400 units bracket avail of a subsidy, whose total outgo the industry estimates at Rs 3,800 crore. To be charged, it would mean a seven per cent rise in rates across the board.

Delhi's bulk power purchase rate was 60 per cent higher than the national average of Rs 3.49 a unit last year. However, what is charged from consumers is the lowest in the country at Rs 2.8 a unit, said an executive with one of the distribution companies (discoms).

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In a first, the government requested the Union comptroller and auditor general audit the three discoms. The three discoms are Reliance Power's BSES Yamuna Power and BSES Rajdhani Power, and Tata Power Delhi Distribution. The city government has 49 per cent stake in each of the three discoms.

The high court said the discoms "function under a regulatory regime…exressly vested with the powers of audit if so required". AAP members of the legislative assembly last year demanded the Delhi Electricity Regulatory Commission (DERC) chief be summoned to the legislature, to explain the high rate regime, alleging the body favoured the discoms.

"DERC is a quasi-judicial autonomous and statutory institution, set up under the Electricity Act, 2003, and is exclusively mandated to fix tariff (rates) and take up all related areas of functioning as prescribed," replied DERC.

"The Delhi government has 49 per cent share holding in all the companies and its high officials are directors on the boards of these. The government is, therefore expected and assumed to be familiar with the affairs of the discoms, said a senior DERC executive.

The city government had also directed DERC to have consumers compensated n their power bills for unscheduled power cuts. Compensation comes under the 'Delhi Electricity Supply Code and Performance Standards'. These standards are currently undergoing changes.

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First Published: Feb 15 2016 | 12:03 AM IST

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