DERC should take everybody on board in deciding tariff: Dikshit

Last Updated: Friday, June 4, 2010 - 22:01

New Delhi: Sending a strong message to power
regulator DERC to consider demands of the discoms to hike
tariff, Chief Minister Sheila Dikshit on Friday said everybody has
to be taken on board while finalising new electricity rates in
the city.

"I told DERC to take everybody on board in deciding
the new tariff. We told them to take everything into
consideration," she said.
Asked whether the government is opposed to cutting down
the tariff as indicated by the regulator, Dikshit said genuine
grievances of the private distribution companies will have to
be addressed by the DERC.

Appearing sympathetic to discoms` demand for a hike in
tariff, the Chief Minister said the DERC should take into
consideration possible increase in cost of power procured from
gas-based power plants following Centre`s decision to hike
price of natural gas.

"Price of power is going up. The discoms also buy power
through power exchanges. The rates go up and down. All these
points will have to be factored in," she said.
Delhi government on May 4 had forced Delhi Electricity
Regulatory Commission (DERC) not to announce the tariff order
apparently coming under pressure from the three private power
distribution companies which had complained that their demand
for increasing power tariff has not been considered by the
regulator while finalising the new tariff structure.

On BJP`s allegations that Government is supportive of
the discoms` demand for hike in tariff, Dikshit said the
government was only concerned about future of power reform in
the city.

"If tariff can be slashed without disturbing the future
of the power reform, then we will not have any problem with
it. How can a government be opposed to a decision if it
benefits the common man," she said.

The DERC, which was making last minute preparations to
announce the new tariff for the year 2010-11, 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 tinkered with.

The government had issued the directive to the DERC
exercising a special power under the Delhi Electricity Act.

Accusing Delhi government of being "hand-in-glove" with
power distribution companies for favouring hike in power
tariff, BJP had yesterday demanded a CBI probe into the issue
and 20 per cent reduction in prevailing rates.

PTI



First Published: Friday, June 4, 2010 - 22:01

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