DERC hikes power tariffs in Delhi by over 8%; PPAC scrapped

By Deepak Nagpal | Last Updated: Thursday, July 17, 2014 - 16:59

Zee Media Bureau/Deepak Nagpal

New Delhi: Amid continuing power cuts, electricity tariffs in Delhi were on Thursday hiked by upto 8.32 percent.

Addressing a press conference, PD Sudhakar, chairman of the Delhi Electricity Regulatory Commission, announced that the hike will translate between 10 paisa and Rs 1.10.

The DERC also announced the creation of a new slab of 801 to 1200 units.
As per the new tariff, which comes into effect today itself, the rate for consumption of electricity between 0 to 200 units will be Rs 4 – a hike of 10 paisa.

Electricity consumption between 201 and 400 units will be charged at Rs 5.95, a hike of 15 paisa; between 401 and 800 units at Rs 7.30, an increase of 50 paisa; between 801 and 1200 units at Rs 8.10, a hike of Rs 1.10; and consumption above 1200 units will be charged at Rs 8.75 per unit.

The DERC chairman said that effective power rates for those consuming upto 800 units will actually come down, as the Commission was scrapping the power purchase adjustment cost (PPAC) currently levied at 6 to 8 percent for all consumers.

For example, power tariff hike for upto 200 units consumption is 10 paise per unit, i.e. about 2.5 percent hike, but DERC has waived PPAC of 8 percent. So, people consuming upto 200 units will get a lower power bill of 5.5 percent, i.e. 8 percent minus 2.5 percent hike.

Similarly, people in 200-400 units bracket will also get a lower bill.
The surcharge levied, meanwhile, stays at 8 percent.

According to Sudhakar, upto 70% domestic users consume upto a maximum of 400 units per month.

The hike is marginal and the effect will be very minimal on domestic consumers, the DERC stated.

The power tariffs for NDMC areas have been increased by up 9.52 percent.

The Commission further announced that from now on, normal charge will be levied for electricity use in common areas of CGHS/DDA societies like parking. Earlier, this consumption used to be charged under the highest slab.

Also, domestic tariffs will be applicable in public parks instead of non-domestic tariffs, Sudhakar announced.

Power tariff for all commercial users like industries and Delhi Metro has, meanwhile, been hiked by upto 11 percent.

Power distribution companies – NDPL, BSES Yamuna and BSES Rajdhani – had demanded an increase in tariffs, owing to high input costs as well as an increase in coal prices.

Most of the power supplied to Delhi is thermal based.

The revision in power tariffs comes amid reports that the 2014-15 Budget for Delhi, to be presented in a few days` time, may make provision for subsidy for domestic consumers.

The subsidy was discontinued with effect from April 1 this year.



First Published: Thursday, July 17, 2014 - 12:17

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