Power stocks rally on tariff hike by DERC

Tata Power and Reliance Infrastructure have rallied 3% each on the Bombay Stock Exchange.

Shares of power generation companies are trading higher on the bourses in opening trades after the Delhi Electricity Regulatory Commission (DERC) announced a 26% increase in power tariff for all domestic consumers with effect from July 1.

The three private distribution companies - Tata Delhi Power, BSES Rajdhani and BSES Yamuna – have sought a tariff hike of 18%, 20% and 27%, respectively, the report suggests.

Tata Power and Reliance Infrastructure have rallied 3% each, while Adani Power, JSW Energy, Reliance Power, Suzlon Energy and Torrent Power are trading higher by 1-2% on the Bombay Stock Exchange.

Meanwhile, the power generation companies have reported a 5.2% year-on-year growth in overall power generation in May 2012, due to decline in coal prices.