DERC increases power rate by 8%

In a bid to improve the revenues of cash-crunched power distribution companies in the national capital, Delhi Electricity Regulatory Commission (DERC) increased power rates by 8.32 per cent for Anil Ambani-promoted BSES Rajdhani Power Limited and BSES Yamuna Power Limited, Tata Power Delhi Distribution Limited, and 9.52 per cent for consumers in the New Delhi Municipal Council (NDMC) area.

DERC has introduced new slabs for high-end domestic consumers of 800-1,200 units, and above 1,200 units to safeguard the smaller consumers from the burden of expensive power, DERC said in its order on Thursday.

DERC expects reduction in the power cost with the commissioning of the first unit of the Sasan Ultra Mega Power Project (660 Mw), which will sell power at Rs 1.19 a unit.

"For further reduction in rate, the Commission has implemented incentive-disincentive mechanism to promote higher realisation on account of sale of surplus power," said the DERC rate order.

 

Delhi's peak power demand touched a historic high at 5,925 Mw on Tuesday, thrice that of Kolkata and twice that of Mumbai.

"The increase in rate would have little trickle-down effect on the revenues of the discoms, as the hike is not on the power purchase cost adjustment charges of the company. We will continue to reel under the high power cost," said an executive of one of the private discoms in the city.

The Aam Aadmi Party, under whose government then chief minister Arvind Kejriwal promised a cut of 50 per cent in the power rates, condemned the increase saying it would burden citizens.