HC asks DERC to respond to plea on power tariff hike

The Delhi High Court today asked electricity regulator DERC to file its response as to whether it has complied with its own formula and procedures in permitting three discoms to raise power tariff under the head of Power Purchase Cost Adjustment Charges (PPAC) costs.
A bench, headed by acting Chief Justice B D Ahmed, asked Delhi Electricity Regulatory Commission (DERC) to file an affidavit within two weeks on the compliance of the formula prescribed in the electricity watchdog's tariff order.
DERC had on 31 July 2013 passed an order permitting Reliance Anil Dhirubhai Ambani Group firms, BSES Rajdhani Power Ltd, BSES Yamuna Power Ltd, and Tata Power Delhi Distribution Ltd to increase their PPAC charges by 6, 8 and 7 per cents respectively.

The court's direction came on the hearing of a PIL filed by an AAP party founding member Madhuresh Lakhaiyar who has alleged DERC, acting in collusion with the discoms, had permitted them to increase Power Purchase Cost Adjustment Charges (PPAC) costs.
During the hearing, Lakhaiyar's counsel said there was a nexus between DERC and discoms as even though PPAC is a component of the tariff, no public hearing took place, which was in violation of a provoison of the Electricity Act, 2003.
He also said no public hearing was conducted by DERC as it was working with a view to providing maximum benefits to the discoms in violation of the trust reposed by consumers in the power watchdog.

The counsel for DERC, however, said a public hearing did take place and a notice was also issued to the public at large seeking their inputs on the matter.
"The July 2013 order has been passed after complying with the relevant provisions of the Electricity Act and increase permitted by DERC was in accordance with the formula adopted by DERC, in its tariff order," DERC's counsel said.