Delhi :Now electricity bill to pinch your pocket

People already reeling under high inflation will now have to shell out more on electricity bills with city`s power regulator on Friday announcing a nearly 22 per cent hike in tariff for almost all categories of consumers.

New Delhi: People already reeling under high
inflation will now have to shell out more on electricity bills
with city`s power regulator on Friday announcing a nearly 22 per
cent hike in tariff for almost all categories of consumers.

In more bad news for consumers, the tariff may also go up
every three months as regulator -- DERC -- decided to review
the electricity rates quarterly to adjust the power purchase
cost of the distribution companies.

The new rates, announced today after a prolonged
controversy, will come into effect from September one.
"We have decided to increase the tariff by 21.77 per
cent. The hike is necessary as power sector is not insulated
from inflation and other market parameters," P D Sudhakar,
chairman of Delhi Electricity Regulatory Commission told

As per the new rates, a domestic consumer will be charged
Rs 3 per unit for first 200 units of power instead of current
Rs 2.45.

The rate for per unit of power has been increased to Rs
4.80 from current Rs 3.95 per unit for usages between next 200
unit to 400 unit while Rs 5.70 per unit will be charged
instead of current Rs 4.65 for usages beyond 400 unit.

The monthly fixed charges for consumers having a
sanctioned load of upto 2 kilowatts have been increased from
Rs 24 to Rs 30 while consumers having sanctioned load between
2 kilowatts to 5 kilowatts will have to pay Rs 75 as fixed
charges instead of current Rs 60.

The fixed charges for consumers having a sanctioned load
of above five kilowatt will have to pay Rs 15 instead of
current Rs 12.

Sudhakar said DERC will adjust the rates after every
three months depending on increase in power purchase cost. He
said power purchase cost keeps changing due to increase or
decrease in cost of fuel used for production of power.
For the non-domestic consumers, the rate has been
increased from Rs 5.40 to Rs 6.50 per unit of power for those
having a sanctioned load upto 10 kilo watt while per unit of
power has been hiked to Rs 6.10 from Rs 4.92 per unit for
consumers having sanctioned load between 10 kilowatts to 100

The DERC announced separate rates for industrial units,
agricultural activities, public lighting etc.

For Delhi Metro, rates have been increased to Rs 3.80
from Rs 3 per unit while for Delhi Jal Board it has been hiked
to Rs 5.60 from Rs 4.70.

Citing severe liquidity crunch, all the three private
power distribution companies in the city have been demanding a
hike in the range of 50 to 60 per cent.

In May last year, the city government had through a
notification stalled DERC`s decision to announce the annual
tariff for 2010-11 till it re-examines the demands from
discoms to increase the rates.

The DERC, which was making last minute preparations to
announce the new tariff, after receiving the government
directive had indicated that it had planned to cut down the
tariff by 20 to 25 per cent as discoms would have a surplus of
around Rs 4,000 crore if the existing tariff was not changed.

Although DERC was strongly arguing for a cut in tariff,
the three-member regulator, following retirement and
subsequent appointment of two new members, gave indication of
taking a sympathetic approach to the demands of the discoms.

The government`s notification was quashed by Delhi
High Court in February, describing the intervention as
"absolutely unjustified, unwarranted, untenable".

While effecting the hike for the private discoms, the
Commission has kept electricity rates at significantly lower
level for NDMC areas where power is distributed by the civic
agency itself.

For first 100 units, a consumer in the NDMC area will
have to pay Rs 2 per unit while it will go up to Rs 2.70 for
units between 101 and 200. The per unit charge will go up to
Rs 3.60 for usages between 201 and 400 units and for above 400
units it will be Rs 4.35 per unit.
DERC member J P Singh said that after increase in tariff,
the private discoms will still have a revenue gap of Rs 3,299
crore which he said will be recovered from the consumers in
the next five years.

Asked whether he was indicating increasing tariff in the
next five years, he did not rule out the possibility but
maintained no concrete answer could be given.

He also said the regulator has disallowed claims of Rs
4,984 crore by the discoms.

Justifying the hike, he also referred to a recent order
of Appellate Tribunal for Electricity which had criticised the
DERC for its tariff order for the year 2008-09.

However, he said the DERC does not agree with certain
observation in the order and will challenge them in the
Supreme Court.

On concerns expressed by RWAs about veracity of audited
accounts of the discoms, Singh said the regulator has already
recommended to the Delhi Government for conduct of a CAG
scrutiny of the audit.

He said DERC has decided to entrust Institute of
Chartered Accountants of India to check physical verification
of assets of the discoms.

He said in order to protect consumer interests and bring
greater transparency, the DERC has decided to involve a
leading NGO to check various claims of the discoms.

Singh said DERC will also issue directive to issue bills
in both Hindi and English.


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