Delhi's power regulator DERC has defended a series of tariff hikes in the last four years, virtually questioning an AAP government appointed panel, which recommended disbanding of the quasi judicial body for failing to protect the interest of consumers.
Chairman of Delhi Electricity Regulatory Commission P D Sudhakar said the regulator increased tariff after considering rise in power purchase cost of the three private distribution companies which buy 95-98 per cent of the electricity as per long-term power purchase agreement.
"The long-term power purchase agreements were finalised by erstwhile Delhi Vidyut Board and all the three discoms buy 95-98 per cent of the power as per provisions of these pacts," Sudhakar told PTI.
Sudhakar said the long-term power purchase pacts were signed by Delhi Vidyut Board (DVB) for 25 to 35 years and discoms. The DVB, which used to supply electricity in Delhi, was disbanded in 2002 as part of reforms in the power sector.
Last week, a high-powered committee of former DERC chief Berjinder Singh, tasked by the AAP government to bring out a white paper on the capital's power sector, accused the regulator of failing to verify genuineness of short-term power purchase by the discoms.
In its report, the committee said when the power tariff should have been slashed between 2011 and 2013, the DERC hiked it several times, overlooking consumers' interest.
Interestingly, under Singh's chairmanship, the DERC in May 2010 had proposed to cut power tariff by 23 per cent, citing healthy financial condition of the private power distribution companies but the move was stalled by the then Congress government by exercising a special power under Delhi Electricity Act.
Sudhakar said he was yet to examine the Singh committee report but asserted that the short-term power purchase cost of the discoms is minuscule, indicating that the committee's observation on the issue was not based on facts.
According to official figures, around 80-90 per cent of total revenue of discoms goes into purchasing power from central and state government-owned entities through long term power purchase agreement at rates determined by the central and state regulators.
