Another power tariff hike in the offing in Delhi

Though officials peg the coming rate rise at 3-4%, Congress leader Ajay Maken has estimated it at up to 20%

Delhiites, already reeling under a recent power tariff increase, will have to brace themselves for another three-four per cent rise in rates, as the Delhi Electricity Regulatory Commission (DERC) will go for an annual tariff determination exercise soon.

This has left the Aam Aadmi Party (AAP) government in the national capital in a spot. The party, which came to power on promises of cheap power and water, is already finding it tough to explain the rise in power rates last month. It is trying to put the blame on private power distribution companies.

Though power minister Satyendra Jain assured citizens the government had urged the DERC to "roll back" last month's rate rise, not only will there be no rollback, power is set to become more expensive. Also, the promise of consumers being "compensated" for unscheduled power cuts will not materialise any time soon, as this isn't feasible in the current set-up.

Though officials say the next rate rise will be of at least three to four per cent, Congress leader Ajay Maken has given a much higher estimate. "It is unfortunate that under this government, which has come to power on the promise of reducing power rates by half, we are facing a six per cent hike now. And, next month, when the regulatory commission will decide on the annual revenue requirement for these private companies on an ARR (aggregate revenue requirement) basis, we will have another tariff rise, of up to 20 per cent," he said.

Government officials say the coming hike is inevitable and there is little the government can do in this regard. On June 15, DERC had announced a power rate rise of four per cent in New Delhi Municipal Corporation areas, four per cent in areas under Tata Power and six per cent in BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd areas. At that time, the power minister had lost no time in writing to DERC, urging for a "rollback". Officials, however, say a rollback isn't likely, as a hike attributed to the power purchase adjustment cost was scheduled to be effective November 2014 and denying it would result in untenable losses to distribution companies.

Despite the AAP government's assurances of compensating consumers to the tune of Rs 50/hour for the first two hours of unscheduled power cuts, followed by Rs 100 for every subsequent hour of power cuts, these aren't seen as materialising any time soon.

"To calibrate this, smart meters are required and half the residential connections do not have such meters. Even in households that smart meters, discoms would need to individually programme every meter," said an official.

Even as the government has written to DERC to penalise distribution companies for unscheduled power outages so that consumers can be compensated, sources say this is far removed from reality.