5 per cent hike in power tariff cleared

The Delhi Electricity Regulatory Commission has allowed a five per cent increase in power tariff to adjust the purchase cost of the distribution companies.

Written by Ruhi Bhasin | New Delhi | Published:February 3, 2012 4:09 am

The Delhi Electricity Regulatory Commission has allowed a five per cent increase in power tariff to adjust the purchase cost of the distribution companies (discoms).

The increase will be applicable from February 1,for a period of three months. After this the DERC is expected to review the hike,based on cost of power bought by the discoms. The hike will be applicable on energy consumption and not on fixed charges.

Power department officials said power generation companies usually pass on the increase in fuel cost to its buyers,and this results in a rise in purchase cost.

“We have effected a five per cent fuel price adjustment (FPA) surcharge per unit of power for a period of three months,” said Jayashree Raghuraman,DERC secretary.

The increase comes five months after the DERC hiked the tariff by 22 per cent for all categories of consumers.

The consumers have to pay a monthly fixed charge,depending on load of their connections. Raghuraman said this is the first time an FPA has been levied to provide cushion to the discoms.

Discoms NDPL,BRPL and BYPL had sought an increase in tariff by 9.12 per cent,10.75 per cent and 12.43 per cent respectively citing increase in power purchase cost due to hike in fuel prices like coal and natural gas.

Following the five per cent surcharge,a domestic consumer will be charged Rs 3.15 per unit for first 200 units of power instead of current Rs 3. The rate per unit of power will be Rs 5.04 against current Rs 4.80 per unit for usages between 200 units to 400 units,while it will be around Rs 6 per unit (instead of current Rs 5.70 per unit) for usages beyond 400 units.

Raghuraman said a “proper prudence check” is being carried out to verify the data submitted by the three discoms demanding hike ranging from 9.12 per cent to 12.43 per cent.

“The commission is of the view that a proper prudence check should be undertaken before additional burden of the magnitude proposed by the distribution utilities is passed on to the consumers,” the DERC secretary said.

While announcing the tariff hike on August 26,2011,the DERC had decided to review the rates quarterly to adjust the power purchase cost of the discoms.

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