Kejriwal targets Sheila Dikshit on power discoms

The Aam Aadmi Party chief claimed that Delhiites are paying two times the electricity bills they should actually be paying

Image
Press Trust of India New Delhi
Last Updated : Feb 01 2013 | 7:29 PM IST

Targeting the Sheila Dikshit Government, activist Arvind Kejriwal today alleged that power distribution companies in the capital "fudged" their records and "committed fraud" to show losses in their revenue while actually making profits.

The Aam Aadmi Party chief also claimed that Delhiites are paying two times the electricity bills they should actually be paying. He accused Dikshit of stopping the Delhi Electricity Regulatory Commission (DERC) from passing an order in 2010 which recommended 23 per cent reduction in the tariff.

"The then DERC chief Brijender Singh was to pass an order on May 5, 2010 but the Delhi Government wrote a letter to Brijender Singh on May 4 under pressure from discoms and stopped him from issuing the order," he told a press conference here.

Reacting to the allegations, Dikshit's office termed them as "bunch of lies". "The allegations are a bundle of lies," her office said.

Power Minister Harun Yusuf said Kejriwal was trying to "sensationalise the issue as he did not say anything new".

"The allegations are totally baseless. The tariff order he was referring to was not signed by all the three members of the DERC. So you cannot call it a tariff order. Even Delhi High court had held that it was not a DERC order," Yusuf told PTI.

Circulating copies of the letter written by Joint Secretary (Power) S M Ali on May 4 to Singh, Kejriwal said the order had concluded that discoms were making "huge profits" and that the power tariffs in the capital should be reduced by 23% rather than increased.    

"The power companies had projected Rs 630 crores of losses for the year 2010-11 and they wanted electricity tariffs to be increased to recover that. However, Singh had concluded that they would make profits of Rs 3,577 crores which if passed on to the consumers would result in 23 per cent reduction," Kejriwal alleged.

"Why did Dikshit issue such an order? Only she can answer the question," Kejriwal said adding that she brought an official perceived to be close to her who "turned a blind eye to all the fraud committed by the discoms owned by Tatas and Ambanis".    

Claiming that DERC itself had held that the discoms had fudged records, he alleged that BSES Yamuna and BSES Rajdhani owned by Anil Ambani group were showing zero bills for a number of consumers including the Delhi Airport and the Delhi Jal Board.

"These were done to show losses. Can anyone believe that Delhi Jal Board does not consume power at all? This was done to show losses," he alleged.

The AAP convenor demanded that FIRs for alleged cheating be registered against the discoms.     "Brijender Singh's tariff order should be implemented and the excess money charged from consumers in the last 3 years should be refunded to them," he demanded.

Kejriwal also demanded that the Chief Minister immediately give her nod for performance and financial audit of discoms by the CAG and sack the current chairman of DERC.     He also claimed that the BJP did not raise these issues despite having proof by not doing justice to its role as Opposition party.

Yusuf said the DERC headed by Berjinder Singh had made calculations on assumptions that power would be available from newly built power plants at low rates. But actually those plants could not generate power as per expectation due to various reasons.    

"In last 10 years, there has been 83% hike in power tariff against 137% increase in power purchase cost. We always tried to be very transparent," said Yusuf.

Yusuf said Delhi Government did not have any problem with CAG audit of accounts of the distribution companies.

"We have filed an affidavit in the Delhi High Court favouring CAG audit of discoms' account. The court is yet to come out with its order on the issue," he said.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 01 2013 | 7:29 PM IST

Next Story