Power stocks surge as DERC approves tariff hike

Shares of power companies moved higher, surging as much as 4 per cent today, after the Delhi Electricity Regulatory Commission (DERC) approved tariff hike for in Delhi region FY15.
CESC climbed 3.85 per cent, while Adani Power gained 3.28 per cent and Tata Power rose by 3.53 per cent on the BSE.
Among others, NTPC was up 2.63 per cent, Reliance Power (2.39 per cent) and Torrent Power (1.33 per cent).
Led by the gains in these stocks, the BSE's power index ended 2.36 per cent higher at 2,257.93.
Power tariff in Delhi was hiked by up to 2.5 per cent.

Delhi Electricity Regulatory Commission said that in effect the tariff will come down as power purchase adjustment cost surcharge has been discontinued.
Power tariff for all commercial users like industries and Delhi Metro have been hiked by up to 11 per cent.
The commission has approved an average tariff increase of 8.32 per cent for all the 3 discoms -- BSES Yamuna, BSES Rajdhani and Tata Power Delhi Distribution Ltd (BYPL, BRPL, TPDDL) and 9.52 per cent for NDMC.