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This is an archive article published on April 1, 2011

DERC finalises new tariff norms

Regulations set down for the control of transmission,generation and distribution of electricity in Delhi

Regulations set down for the control of transmission,generation and distribution of electricity in Delhi,monitored by the Delhi Electricity Regulatory Commission (DERC),was expected to lapse at midnight on Thursday.

However,the DERC has already finalised a new set of regulations as far as the tariff goes,and it has extended the principles for regularisation for tariff till March 31,2012. Delhi’s discoms have expressed dismay at the news,with all three of complaining of “financial crisis”.

The three Delhi discoms — BRPL,BYPL and NDPL — have told the commission that their coffers are running dry,and this would spell bad news for the upcoming summer. “Since Delhi does not generate enough power for its own consumption,discoms are entrusted to procure power to feed Delhi from other sources. The cost of purchasing this power has risen steadily,year after year,whereas the tariff has remained constant. It is becoming entirely unsustainable for us to purchase such expensive power,and we have conveyed this to the Commission,” a senior official from one of Delhi’s discoms explained.

The discoms are pleading that the commission introduce a tariff order that reflects the rising cost of power purchase.

“The genuine worry now is that despite having made adequate arrangements to source enough power for the summer months,we may face a situation where we will be in no position to pay for that power. Banks are already refusing to extend loans to any of the three discoms,” another official said. The current tariff,introduced in 2007-2008,was prepared keeping in mind the estimated expenses for the period by the discoms.

Meanwhile,the DERC is also debating introducing a new clause in their regulatory set up,which will ensure that discoms are able to claim power purchase expenses in the same year.

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