Power in Delhi to cost more

DERC raises tariff by 22%, to be effective from September 1.

Delhiites will now have to pay more for consuming electricity with the city’s regulator on Friday announcing over 21 per cent increase in tariffs.

The rise in tariffs, to be effective from September 1, has been announced in almost all the categories including domestic and industrial. Power tariff in the national capital was last revised in 2009.

“We have decided to increase the tariff by 21.77 per cent. The rise is necessary as the power sector is not insulated from inflation and other market parameters,” Delhi Electricity Regulatory Commission (DERC) Chairman P D Sudhakar said.

According to the new rates, a domestic consumer will be charged Rs 3 a unit for the first 200 units of power, instead of the current Rs 2.45. Between 201 and 400 units, the rate has been increased to Rs 4.80 from Rs 3.95 a unit, while Rs 5.70 per unit will be charged instead of the current Rs 4.65 for usages beyond 400 units.

Monthly fixed charges for consumers having a sanctioned load of up to 2 kilowatts have been increased from Rs 24 to Rs 30, while consumers having sanctioned load between two and five kilowatt 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 150 instead of the existing Rs 120.

Reliance group companies BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd account for around 70 per cent of power distribution in Delhi city. Private power distribution companies in Delhi including BSES, BYPL and Tata Power’s North Delhi Power Ltd were asking for about 50 per cent increase in tariff due to the increase in the cost of power purchase among other factors.

A BSES spokesperson said, “This is the first significant tariff increase to take place in Delhi in the last five years. During this period, the cost of purchasing power, which constitutes more than 80 per cent of a discom cost, has increased by over 100 per cent. Since privatisation nine years ago, total cumulative tariff hike in Delhi city is just 16 per cent against a power purchase cost hike of about 200 per cent leading to huge under recoveries.“

“we are studying the tariff order issued by DERC, which is a step closer towards reasonable recovery of costs,” the spokesperson added.

Delhi apart, the country has seen no substantial rise in power rates for the past five to six years and the accumulated losses of distribution companies have risen to Rs 75,000 crore. This figure has almost doubled in the past four years. By the current trends, the projected losses of the discoms are estimated to reach Rs 1.16 lakh crore by 2014-15, according to power ministry estimates.