DERC free to fix new power tariff: Dikshit
New Delhi: Days after the Delhi High
court slammed her government for stalling DERC`s new power
tariff, Chief Minister Sheila Dikshit on Tuesday said the regulator
was free to fix the new rates for the city.
"DERC has to decide about the new power tariff,"
Dikshit said when asked about various discoms seeking a
"substantial" hike in tariff.
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.
The government`s notification was quashed by the
court on Friday last describing the intervention "absolutely
unjustified, unwarranted, untenable."
All the three private power distribution companies
have been demanding a substantial hike in tariff citing
increased power purchase cost.
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