HC seeks DERC reply on power tariff hike

The DERC has been asked to submit its affidavit within two weeks explaining the formula and procedure behind the tariff hike.

New Delhi | Published: February 21, 2014 3:07 am
According to the plea, the DERC had allowed the increase in surcharge 'in nexus with the discoms'. According to the plea, the DERC had allowed the increase in surcharge ‘in nexus with the discoms’.

Expressing its displeasure at the “silent order” issued by the Delhi Electricity Regulatory Commission (DERC) allowing the three power distribution companies in the capital to increase power tariffs, the Delhi High Court on Thursday directed the regulator to file an affidavit on whether it had applied its own procedure and formula to calculate the tariff increase.

“Is there a formula for calculating (the increase)? Have you followed the formula?” the bench of acting Chief Justice Badar Durrez Ahmad and Justice Siddharth Mridul said while hearing a plea filed by Madhuresh Lakhaiyar, one of the founding members of the AAP, against the tariff hike.

The DERC has been asked to submit its affidavit within two weeks explaining the formula and procedure behind the tariff hike.

The DERC had on July 31, 2013, passed an order permitting BSES Rajdhani Power Ltd, BSES Yamuna Power Ltd, and Tata Power Delhi Distribution Ltd to increase their Power Purchase Adjustment Charges (PPAC) charges by 6, 8 and 7 per cent,  respectively.

According to the plea, the DERC had allowed the increase in surcharge “in nexus with the discoms”.

Advocate Suresh Tripathy, who appeared for the petitioner, argued that the PPAC accounted for nearly 80 per cent of the power bills and the DERC did not follow the procedure of conducting a public hearing before allowing increase in tariff.

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