Reacting to the DERC’s decision, the Aam Aadmi Party Government said it will ask the regulator to review the hike as it will put additional burden on the consumers.
The capital’s power regulator on Friday hiked the power tariff up to six per cent by increasing the surcharge component. The hike will come into effect from Monday and will be applicable for the next three quarters. Reacting to the move, the AAP-led Delhi government — which had promised cheaper power — conveyed its disagreement and said it will “seek a review of the order” from the regulator.
The Delhi Electricity Regulatory Commission (DERC) increased the power purchase cost adjustment charges (PPAC) — a surcharge component — up to six per cent in order to compensate private discoms for variations in market-driven fuel costs.
The central, east, south and west districts, where Reliance-owned BRPL and BYPL discoms operate, will experience the maximum hike at 6 per cent. North and northwest districts, where TATA-owned TPDDL operates, will see a hike at 4 per cent. The New Delhi district will see a hike of 5 per cent.
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DERC said the provisional PPAC will be applicable for the next three quarters that will be spread over nine months.
“While finalising the provisional PPAC charges, the commission has taken into account the different entitlements of the respective discoms based on preliminary prudence checks. DERC specifically observes that PPAC charges constitute a reasonable extra charge on all consumers, which will maintain constant and quality power supply by discoms,” a DERC official said.
Meanwhile, Delhi Power Minister Satyendra Jain said the government will seek “a review” of the order and “will convey its disagreement to the commission in writing”.
“The government has also decided to seek opinion for taking legal recourse against this decision — which in its view is uncalled for — since no financial burden should be passed on to consumers till all issues arising out of the functioning of power distribution companies is sorted out,” Jain said.
The minister added that DERC should “wait” for the Comptroller and Auditor General’s report on discoms before taking any decision on electricity tariffs in Delhi.
What this means for consumers:
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*PPAC is the surcharge levied to compensate discoms for variations in fuel prices in the market
* On an average, the surcharge will add Rs 40-Rs 70 to electricity bills depending on power consumed
* The surcharge cannot be levied on the 8 per cent surcharge
* The percentage increase on account of PPAC will be applied as surcharge on the total energy and fixed charges billed to a consumer
Kaunain Sheriff M is an award-winning investigative journalist and the National Health Editor at The Indian Express. He is the author of Johnson & Johnson Files: The Indian Secrets of a Global Giant, an investigation into one of the world’s most powerful pharmaceutical companies.
With over a decade of experience, Kaunain brings deep expertise in three areas of investigative journalism: law, health, and data. He currently leads The Indian Express newsroom’s in-depth coverage of health.
His work has earned some of the most prestigious honours in journalism, including the Ramnath Goenka Award for Excellence in Journalism, the Society of Publishers in Asia (SOPA) Award, and the Mumbai Press Club’s Red Ink Award.
Kaunain has also collaborated on major global investigations. He was part of the Implant Files project with the International Consortium of Investigative Journalists (ICIJ), which exposed malpractices in the medical device industry across the world. He also contributed to an international investigation that uncovered how a Chinese big-data firm was monitoring thousands of prominent Indian individuals and institutions in real time.
Over the years, he has reported on several high-profile criminal trials, including the Hashimpura massacre, the 2G spectrum scam, and the coal block allocation case. Within The Indian Express, he has been honoured three times with the Indian Express Excellence Award for his investigations—on the anti-Sikh riots, the Vyapam exam scam, and the abuse of the National Security Act in Uttar Pradesh. ... Read More
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Reacting to the DERC’s decision, the Aam Aadmi Party Government said it will ask the regulator to review the hike as it will put additional burden on the consumers.
